The estimated total available tailings feed for the Project is about 5.49 Mt of Type 1 tailings, and 3.73 Mt of Type 2 tailings for a total NI 43-101 inferred resource of ~9 Mt
EnviroGold announces positive results of an economic assessment. (Credit: Khusen Rustamov from Pixabay)
EnviroGold Global Limited (CSE: NVRO | OTCQB: ESGLF | FSE: YGK) (“EnviroGold Global” or the “Company“), a clean technology innovator transforming the world’s overabundance of waste into responsibly produced precious metals and critical materials, is pleased to announce the positive results of an economic assessment on the Hellyer Tailings Project (the “Project”) in Tasmania, Australia. A National Instrument 43-101 (“NI 43-101”) Technical Report reporting the Hellyer Mineral Resource Estimate and economic assessment results will be filed within 45 days on the Company’s SEDAR profile.
“This is an exciting validation of the potential economic value of our project at Hellyer, and the wider applicability of our technology to drive enhanced resource recoveries. We will be able to further refine our scientific and technical parameters as we progress to construction and metal production,” said EnviroGold Global CEO, Dr. Mark Thorpe. “We look forward to replicating these results at other project sites in the near future.”
The estimated total available tailings feed for the Project is about 5.49 Mt of Type 1 tailings, and 3.73 Mt of Type 2 tailings for a total NI 43-101 inferred resource of ~9 Mt (See table). The Mineral Resource estimate is reported in accordance with NI 43-101 Guidelines for current Type 1 and Type 2 tailings and has an effective date of April 30, 2022.
While the resource is presently being reported as an inferred resource for the purposes of this economic study, it is important to note that the Hellyer Tailings Resource has been extensively studied, has been the subject of multiple JORC resource reports (most recently in 2020), each of which included measured, indicated & inferred resources. The Company’s management is confident that the substantial body of work completed on the Hellyer Tailings will facilitate a near-term resource upgrade.
The homogenised nature of the tailings deposit and the likely mining style (dredging or hydro-mining) largely precludes the ability to apply any cut-off grade which may, in the future, be determined based on project economics. Accordingly, no cut-off grade is used and the stated resource essentially represents the complete tailings accumulation at the reported effective date.
Determining reasonable prospects for eventual economic extraction incorporated the estimated cost for reclaiming, transporting, and processing the reprocessed HGM tailings stream in the NVRO process plant, which is estimated to be approximately US$80 per tonne. Assuming a gold price of US$1,650/oz and a projected gold recovery of 85%, then the break-even cut-off for the mineralization is estimated at 1.51 g/t Au. The tailings mineralization averages a grade of 2.3 g/t Au and is significantly more than the indicative break-even grade as this calculation does not consider the silver and the base metals.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. The QP’s are not aware of any known legal, political, environmental, or other risks that could materially affect the potential development of the mineral resources.
Source: Company Press Release