Precious metals developer Minco today said "economics are excellent" on its new Mexican silver project after conducting a feasibility study.
Minco said the study had identified a likely internal rate of return on 46 per cent, an operating profit of $9.94 per tonne, on a likely 100,000-tonne-a-year production from the silver tailings project at Laguna Zacatecana.
Total pre-production capital expenditure is seen at $19.4 million. Minco said it will begin project finance negotiations with banks.
Minco has a licence to extract up to six million cubic metres of silver bearing tailings from Laguna Zacatecana. The feasibility study estimated total silver equivalent production of 18 million ounces from reserves of 7.6 million tonnes, and a product life of eight years.
Minco said it will also drill on land around the lake, where reserves could be as large as the lake itself.