Canadian mining company GoldMining has announced the filing of an independent Technical Report with an updated Preliminary Economic Assessment (PEA) for its La Mina Project.

The La Mina property comprises two concession contracts and two concession contract applications covering 3,210ha of area in the Department of Antioquia, Republic of Colombia.

Its mineral resource estimate (MRE) incorporates the La Cantera, La Garrucha and Middle Zone porphyry deposits located within 1,000m from each other.

The PEA indicates a life of mine (LOM) production of around 1.74 million gold equivalent ounces at the La Mina project, averaging 155,500 ounces over an estimated life of 11 years.

It is expected to produce 1.29 million ounces of gold, 203.9 million pounds of copper and 2.98 million ounces of silver at recoveries of 91%, 80% and 64%, respectively.

The PEA shows an after-tax Net Present Value (NPV) of around $279m at base prices of $1,750 per ounce of gold, $21 per ounce of silver, and $3.50 per pound of copper.

It indicates a total cash cost of $795 per ounce of gold and an all-in-sustaining cost (AISC) of $912 per ounce of gold, excluding by-product credits.

The project may require an initial capital expenditure of around $425m for a 15,000tonnes per day processing facility and mine closure expenditures of around $203m.

The PEA study results of La Mina are preliminary in nature and are intended to provide an initial picture of the project’s economic potential, said the Canadian mining company.

GoldMining, in its statement, said: “Compared to the PEA figures disclosed by the Company in the news release dated July 24, 2023, the results announced herein and in the Technical Report include minor corrections primarily to address the accounting of plant availability and clarifications on specific calculations.

“The PEA mine schedule and economic assessment includes numerous assumptions and is based on inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as mineral reserves.

“There is no certainty that the project economic assessments described herein will be achieved or that the PEA results will be realised.”