Australia-based EnviroGold has revised the scoping study for its 65% owned Azuay gold project in Ecuador, as part of the proposed expansion of production from the Papercorp and Pinglio underground mines in two stages.
This is expected to reduce the equity requirement and risk profile of the project, which has targeted 100,000oz of gold production a year by 2014.
The revised development will include increasing the mining rate from mid 2012 to achieve 25,000t a month of ore production in six months.
According to the scoping study, the project will have a mining rate of 300,000tpa and mine life of 14 years.
The project is expected to produce 53,000oz of gold between July 2013 to December 2014 under phase 1, and produce 96,000oz a year between January 2015 to June 2027 under the phase 2.
The operation costs will be $502/oz for phase 1 and $391/oz for phase 2.