News: Renaissance Minerals gold project could have operating costs of US$611/oz

Renaissance Minerals' (ASX:RNS) gold project in eastern Cambodia could have enviable all-in-costs of just US$611 an ounce if its Okvau Deposit is put into production.

A feasibility study demonstrated the benefits of low operating costs and relatively simple mining methods to generate cash flows of US$45 million per annum in the early years.

This would entail conventional processing with a 1.5Mtpa plant comprising flotation and cyanide leaching to produce gold dorè.

Based on annual gold production of around 91,500 ounces of gold over an initial 8 year mine life would result in a payback period of 2.6 years and an internal rate of return of 35%.

The current Indicated and Indicated Mineral Resource at Okvau is 1.13 million ounces grading 2.2g/t gold.

Pre-production capital costs are estimated at US$120 million.

All in all, the PFS fleshed out a gold project with compelling margins even at current gold prices, a rarity in today's environment.