Canadian exploration company Cartier Resources has filed the technical report related to the Preliminary Economic Assessment (PEA) for the Chimo mine in Quebec, Canada.

Cartier filed the technical report to SEDAR (System for Electronic Document Analysis and Retrieval), used for filing information with the Canadian securities regulatory authorities.

It was prepared by independent consulting firm InnovExplo, in line with National Instrument 43-101 standard of disclosure for mineral projects (NI 43-101).

The report presents the results of the PEA for the Chimo Mine property and the West Nordeau Gold Deposits, located along the Larder Lake, Cadillac fault, 45km east of Val-d’Or, Quebec, Canada.

The Chimo Mine Gold System mineralisation contains 29 gold zones, a part of 19 gold structures, grouped into three gold corridors, said the company.

Cartier Resources president and CEO Philippe Cloutier said: “The positive results of the study demonstrate the economic viability at the PEA-level for the project as well as several optimization opportunities related to the characteristics of the Project.

“Two drills are in operation on the property and the results continue to increase the size of the gold zones with a view to continuing to increase the project’s resources. Strategic solutions are being studied to further push the development of the project.”

The PEA suggests an underground mining operation with 280 employees, leveraging conventional longitudinal and transverse long-hole stopping at a mining rate of 4,500tpd.

The mined material will be sorted using automated sensor-based sorting technology with an expected concentration ratio of 1.85 and a recovery rate of 91.9%.

The sorted material is planned to be processed in a concentrator using a gravity separator, followed by a carbon-in-leach process for an estimated recovery rate of 93.1%.

According to the PEA, the project requires C$341m ($251m) of initial capital and CAD$160m ($117m) of sustaining capital.

The financial analysis suggests an average costs of $647/oz and all-in sustaining cost of $755/oz are expected over the mine life, at a 5% discount rate, said the company.