Categories: Base Metals / General Market Commentary / Precious Metals
Topics: General Base Metals / General Market Commentary / General Precious Metals

New study confirms world class potential of Hot Maden, says Mariana

New study confirms world class potential of Hot Maden, says Mariana

Mine will pay back in a little over two years suggests PEA

Mariana Resources (LON:MARL CVE:MARL) may soon have a stake in one of Europe’s most profitbale gold mines after an independent study estimated the potential returns from Hot Maden at just shy of US$1.4bn.

Glen Parsons, the AIM-listed group’s  chief executive, said the preliminary economic assessment (PEA) had finally revealed the real potential of the project in Turkey.

"We have always believed Hot Maden to be a world class deposit and, with a potential post-tax NPV [net present value] for the base case mining scenario of $1.37B and post-tax IRR of 153%, this is certainly proven correct.” 

The study was based on processing 7mln tonnes of ore over nine years, which at a grade of 11% amounts to production of 2.79mln ounces.

As well as gold, the PEA also included 166,000 tonnes of copper, which took the gold equivalent total to 3.43mln ounces.

“The high grade nature of this resource and relatively low capital (CAPEX) and operating (OPEX) costs should result in the delivery of considerable cashflow and a short payback period (around 2.1 years [or 153% IRR], including underground mine development) on initial investment,” said Parsons.

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