Silver Bear Resources has received a positive Preliminary Economic Assessment (PEA) for the Mangazeisky North (M North) deposit within the Mangazeisky Silver Project in the Republic of Sakha (Yakutia), Eastern Russia. The PEA investigates the integration of M North with the Vertikalny Central deposit as a single plant multi-pit operation.
The company has also received an updated mineral resource estimate for M North. There has been a 10% increase in the indicated resource tonnes and a 23% increase in indicated resource grade. The combined inferred and indicated resource for M North increases 29% in ounces and 12% in grade.
The resource update and PEA were prepared by independent mining consultants, Tetra Tech Canada Inc.
The M North PEA studied two options first - integration of the M North mine plan into the Vertikalny Central mine schedule detailed in the 2016 Feasibility Study Update, in which mining at M North will commence in quarter 3 of 2019, with first mineralised material processed through the Vertikalny Central mine in quarter 1 of 2020; and secondly a stand-alone option for M North.
Silver Bear's president and chief executive officer Graham Hill said, “I am very pleased with the outcome of the resource update and the PEA. The positive results support our goal of increasing resources and mine life by establishing a multi-pit single plant mining operation by integrating multiple satellite resources with the original Vertikalny Central mine development.
“The PEA demonstrates that the Mangazeisky North deposit merits implementation and integration into the project adding significant value to the mine life and NPV when combined with the Vertikalny Central mine schedule.
“Importantly, it delays the requirement to go underground at Vertikalny Central with the resultant delay in underground development capital expenditure which, together with its extension to the life of mine of the overall project, substantially benefits the mine’s NPV.
“Based on the positive PEA the company will be initiating a feasibility study at M North during the second quarter, as well as continuing its exploration and resource drilling campaign on a number of satellite resources and targets that surround the Vertikalny Central mine area.”
Silver Bear is focused on the development of its Mangazeisky project, covering a licence area of approximately 570sqkm that includes the high-grade Vertikalny deposit, which is amongst the highest grade silver deposits in the world, located 400km north of Yakutsk in the Republic of Sakha within the Russian Federation.