At the end of March, Fiore had $17.5 million of cash, a decrease over the $19.2 million in the bank at the end of December due to investments made in the leach pad as well as spending on ongoing drilling at feasibility study work at the Gold Rock project, a potential satellite operation to Pan.
“We advanced on a range of fronts in Q2 (the first calendar quarter) and were particularly pleased to see normal gold production levels resuming as Q2 progressed,” Tim Warman, Fiore CEO, said in a release. “Through the quarter, we have also made good progress on Pan’s leach pad expansion and look forward to the positive impact on gold recovery when we place first ore on the new pad in fiscal Q3.”
This fiscal year (started October 1, 2020), the company expects to generate 44,000 to 47,000 oz. of gold at AISCs of $1,125 to $1,175 per oz. According to the December mine plan update, based on a current nameplate capacity of 12,701 tonnes per day (14,000 tons) per day, Pan has a mine life reaching out to 2025.
Feasibility work is ongoing for the federally permitted Gold Rock project, about 12 km southeast of Pan. Based on an April 2020 preliminary economic assessment, Gold Rock could be an open pit operation, generating an additional 55,800 oz. gold annually over a 6.5-year mine life, at all-in sustaining costs of $1,008 per oz. with a pre-production capital estimate of $64.6 million.
In the release, Warman added that Fiore is looking to operate Pan and Gold Rock in unison, which would organically double the company’s gold output in Nevada.
(This article first appeared in the Canadian Mining Journal)
