Latitude 66 (ASX:LAT) has completed a Scoping Study for the Kuusamo Schist Belt (KSB) Project in Finland, which confirms the asset as a highly economic standalone gold-cobalt operation.
The study outlines the potential for robust base case economics over a 7.2 year mine life, with average production of 65,000 ounces per year of gold and 465 tonnes of cobalt.
Latitude, which has a market capitalisation of $11.62 million, says the project will have low operating costs with all-in sustaining costs of US$1,038 ($1,651) per ounce of gold, as well as a low capex estimate of US$100 million with a 16-month payback period.
The study shows the project to have a post-tax net present value of US$433 million and an internal rate of return of 98% at US$3,000 per ounce of gold.
According to the ABC Bullion, gold’s spot price sits at $4,808.78 per ounce as of 12pm AEDT today.
Managing Director Grant Coyle says the KSB Project has “significant” upside potential due to highly prospective nearby exploration potential and low capex expansion options.
“Latitude remains committed to developing the KSB Gold-Cobalt Project in northern Finland with the Scoping Study providing a strong foundation and significant step towards delivering on this objective,” Coyle says.
“The KSB Project provides a unique opportunity to support a sustainable supply of cobalt that is underpinned by the high margin economics of the gold from the project.”
Latitude is focusing on expansion potential and operational opportunities including drilling near-mine extensional targets identified both down-dip and along strike of the K1 indicated and inferred resource, as well as to test regional resource expansion potential initially at the nearby K6E and K6W prospects.
The company will also undertake environmental best practice measures and optimisation targeting for a carbon neutral operation.
Latitude 66 has established the potential for a camp-scale district with the KSB Project with an existing resource of 7.3 million tonnes @ 2.7 grams per tonne gold for 650,000 ounces and 0.08% cobalt for 5,840 tonnes.
Write to Aaliyah Rogan at Mining.com.au
Images: Latitude 66
