Rosita Mining has contracted Canada-based Denm Engineering to provide a preliminary engineering design for a gold and copper recovery plant at its 65%-owned Santa Rita stockpile and tailings project, near Rosita, Nicaragua.
The Rosita gold-copper project is located 275km north-east of Managua and 120km west of the port town of Puerto Cabezas.
Denm Engineering will provide the design using its sulphidisation, acidification, recycling and thickening (SART) technology, which has been used in gold mining plants across the globe.
The technology enables recovery of gold from ores with high concentrations of cyanide leachable copper.
Rosita Mining president and CEO John Cook said: "We are excited about this next stage in the development of the Santa Rita gold-copper stockpiles project, especially in light of the renewed investor interest in gold.
"Our focus remains on near-term production and this phase of test work is a critical step towards achieving this goal."
For the project, the company also developed a preliminary metallurgical flow sheet being used as the basis for further engineering work.
SGS Lakefield has reviewed the initial process flow sheet for the recovery plant.
Going forward, additional metallurgical tests will be carried out leading to the completion of a preliminary economic assessment (PEA) and the commencement of environmental permitting.
The work is expected to take nine months for completion.