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Friday, 24th November 2006 (3005 views)

Morgain Minerals has declared that its directors have sanctioned the building of the Castillo gold project which is situated in Durango state in Mexico.

All that is needed now for work to begin is the final operating permit and the securing of finance after the company decided that the site was "economically viable and robust".

A feasibility study conducted by Morgain Minerals showed that the projected heap-leach, open pit programme would produce an average gold sale of 29,000 ounces per annum over a period of 12 years.

Additionally, by upping the production levels at the property as well as contracting work to mining and crushing workers, Morgain has claimed that it expects it can reduce costs.

The cash costs rising from the Castillo gold project are predicted to be $337 for every ounce produced should contractors be employed.

Alongside the Castillo project, Morgain Minerals has focused its attentions on two other Mexican properties, those at Cuatro Hermanos and La Fortuna.

 

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