EnviroGold (ASX:EVG) results of its scoping study for the planned expansion of the Pinglio and Papercorp underground mines in the Azuay region of Ecuador would have total capital costs of US$77.5 million.
EnviroGold is required to spend US$6.5 million to earn a 65% interest, and conduct a 27,000 metre drilling program and associated resource definition during 2011.
The projected income for ten years from 2013 was US$993 million, with the EnviroGold share of net profit after tax of US$235 million.
Brian Johnson, executive chairman, said "EnviroGold’s share of potential average annual profits were similar to those expected from its Las Lagunas project in the Dominican Republic which will be in production in 12 months, but required considerably less equity contribution."