Lumina Gold Corp. (TSXV: LUM) (OTCQX: LMGDF) (the
“Company” or “Lumina”) is pleased to announce that it has completed
two trade off studies that will help form the basis of its updated
Preliminary Economic Assessment (the “PEA”). The first study
evaluated the addition of secondary crushing and high-pressure
grinding rolls (“HPGR”) to replace the semi-autogenous grinding
(“SAG”) mills that were contemplated in Lumina’s June 2018
Preliminary Economic Assessment (the “2018 PEA”). The second trade
off study evaluated the addition of a Carbon-In-Leach (“CIL”)
circuit to enhance recoveries and allow for the production of doré
on site.
Both studies showed potential for enhancements
to recoveries and operating cost reductions. Lumina intends to
integrate the addition of a CIL circuit and HPGR into its updated
PEA, which it expects to release in the second quarter of 2020.
Trade-off Study Highlights and
Conclusions:
HPGR Evaluation
- The study demonstrated an approximately 30% savings in
comminution circuit operating costs- Based on the trade-off study,
the comminution operating costs for the HPGR circuit are estimated
to be $3.75 per tonne processed compared to $5.62 per tonne
processed for the SAG milling circuit that was used in the 2018
PEA(1)
- The operating cost savings are driven by reduced costs for
steel and lower power consumption
Metallurgical Recovery
Flowsheet
- Adding the CIL circuit enhanced total gold recoveries, which
offset additional capital and operating costs for the CIL
circuit
- The circuit allows for the saprolite portion of the mineral
resource to be extracted
- Production of doré will eliminate the need for a gravity
concentrate to be shipped from the mine
High-Pressure Grinding Roll Trade-off
Study Details
FLSmidth (“FLS”) tested a master composite made
from four PQ drill holes to evaluate the viability of HPGR. Testing
included JKTech Drop Weight tests, Unconfined Compressive Strength
tests, Bond Low Energy Crusher Work Index tests, Bond Abrasion
Index tests, Bond Rod Work Index tests, Bond Ball Work Index tests
and HPGR testing. The average Bond Ball Work Index for the 2019
master composite was 17.1 kWh per metric tonne.
The study showed that on a per tonne basis
comminution circuit operating costs could be reduced by
approximately 30%. The operating cost savings are driven by reduced
costs for steel and lower power consumption. The study also showed
that the HPGR circuit could be implemented for slightly less
initial capital and equipment costs versus the conventional SAG
mill circuit. The new circuit requires a lower connected power
load, with an approximate 4 megawatt hour reduction at a 40,000
tonne per day throughput. Metallurgical Recovery Trade-off
Study Details
Two new flow sheets were evaluated and modelled
for net present value optimization. The results from the 2018 PEA
flow sheet were compared to the two new alternatives:
1) 2018 PEA flow sheet – Utilizes gravity
concentration, bulk rougher flotation, bulk cleaner scavenger
flotation, bulk cleaner flotation, copper-molybdenum separation,
and molybdenum cleaner flotation. No cyanide leaching was
included.
2) Flotation Plus Leaching – Evaluated the
same equipment as the 2018 PEA flowsheet and added a 5,000 tonne
per day CIL circuit. The circuit would be further doubled in size
to contemplate the planned throughput expansion in the 2018 PEA
from 40,000 to 80,000 tonnes per day.
3) Whole Ore Leaching – Evaluated only producing
a doré product using a Carbon-In-Pulp circuit.
The study’s conclusion is that flotation plus
leaching is the preferred flow sheet given the enhanced recoveries
versus the 2018 PEA (see September 23, 2019 news release). Whole
ore leaching only produced doré and despite having higher gold
recoveries, it does not receive the benefit of recovering copper, a
substantial by-product.
Quality Assurance
The metallurgical tests were conducted by
independent commercial laboratories and the samples used for
testing were selected to be representative of the material that is
currently planned for processing. The capital and operating cost
estimates were prepared by qualified engineers and metallurgists
who are familiar with the level of detail required for this stage
of study.
Lumina is not aware of any drilling, sampling,
recovery or other factors that could materially affect the accuracy
or reliability of the data referred to herein.
Qualified Persons
Kathleen Altman, P.E., Ph.D., a Qualified Person
as defined by National Instrument 43-101, is responsible for the
trade-off studies presented in this news release and has reviewed,
verified and approved the contents of this news release as they
relate to the trade-off study results as well as the data
underlying the studies. Dr. Altman is independent from Lumina and
confirms there were no limitations from the Company in completing
the trade-off studies
Footnotes
(1) Cost data used for the
trade off study was based on the 2018 PEA cost estimates and has
not been updated for current market prices.
About Lumina Gold
Lumina Gold Corp. (TSXV: LUM) is a Vancouver,
Canada based precious and base metals exploration and development
company focused on the Cangrejos Gold-Copper Project located in El
Oro Province, southwest Ecuador. Lumina has an experienced
management team with a successful track record of advancing and
monetizing exploration projects.
Further details are available on the Company’s
website at https://luminagold.com/.
To receive future news releases please sign up
at https://luminagold.com/contact.
LUMINA GOLD CORP. |
|
|
For further information contact: |
Signed: “Marshall Koval” |
Scott Hicks |
|
shicks@luminagold.com |
Marshall Koval, President & CEO, Director |
T: +1 604 646 1890 |
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
Cautionary Note Regarding
Forward-Looking Information
Certain statements and information herein,
including all statements that are not historical facts, contain
forward-looking statements and forward-looking information within
the meaning of applicable securities laws. Such forward-looking
statements or information include but are not limited to statements
or information with respect to: Lumina intending to integrate the
addition of a CIL circuit and HPGR into its updated PEA; that
Lumina expects to release an updated PEA in the second quarter of
2020; and that production of doré will eliminate the need for a
gravity concentrate to be shipped from the mine. Often, but not
always, forward-looking statements or information can be identified
by the use of words such as “will”, “intends”, “expects” or
variations of those words and phrases or statements that certain
actions, events or results “will” be taken, occur or be
achieved.
With respect to forward-looking statements and
information contained herein, the Company has made numerous
assumptions including among other things, assumptions about general
business and economic conditions, the prices of gold and copper,
and anticipated costs and expenditures. The foregoing list of
assumptions is not exhaustive.
Although management of the Company believes that
the assumptions made and the expectations represented by such
statements or information are reasonable, there can be no assurance
that a forward-looking statement or information herein will prove
to be accurate. Forward-looking statements and information by their
nature are based on assumptions and involve known and unknown
risks, uncertainties and other factors which may cause the
Company's actual results, performance or achievements, or industry
results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements or information. These factors include,
but are not limited to: risks associated with the business of the
Company; business and economic conditions in the mining industry
generally; the supply and demand for labour and other project
inputs; changes in commodity prices; changes in interest and
currency exchange rates; risks relating to inaccurate geological
and engineering assumptions (including with respect to the tonnage,
grade and recoverability of reserves and resources); risks relating
to unanticipated operational difficulties (including failure of
equipment or processes to operate in accordance with specifications
or expectations, cost escalation, unavailability of materials and
equipment, government action or delays in the receipt of government
approvals, industrial disturbances or other job action, and
unanticipated events related to health, safety and environmental
matters); risks relating to adverse weather conditions; political
risk and social unrest; changes in general economic conditions or
conditions in the financial markets; and other risk factors as
detailed from time to time in the Company's continuous disclosure
documents filed with Canadian securities administrators. The
Company does not undertake to update any forward-looking
information, except in accordance with applicable securities
laws.
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