Investors in Mano River (AIM:MANA) were given plenty to chew over today after the company updated the market on the results of a feasibility study into the New Liberty Gold Project.
The study reaffirmed the robust nature of New Liberty, which is projected to produce 84,000 ounces of gold per annum for the first five years before potentially moving underground. The mine is anticipated to start production in the first half of 2008 and assuming a $600 gold price and 70% debt financing, will have an strong internal rate of return of 72%.
Tom Elder, President and CEO, added:"We are very pleased with the positive outcome achieved in the Feasibility Study on Mano's New Liberty Gold Project in western Liberia. The deposit displays simple geology, good grinding characteristics (i.e. the ore is relatively soft) and excellent metallurgy, resulting in high overall metal recovery of 93%. Once the open pit phase of operation is completed, underground mining, probably via ramp access, of as much as possible of the balance of the resource should offer the scope to extend the life of the operation beyond the present 8 years. Studies of this potential are about to commence. In addition, within truckabledistance, there are prospects such as Weaju which may have the potential to provide further feed to the New Liberty plant."
Shares in Mano River rose slightly to 9.625p, despite the positive outcome of the study on the economics of the New Liberty Gold Project.