did someone say silver?

please click this link...

http://money.ninemsn.com.au/article.aspx?id=8172968

Study confirms viability of Cortona mine

30/11/2010 1:27:01 PM

Aspiring gold producer Cortona Resources Ltd says a study has confirmed the viability of the first phase of its Dargues Reef underground project.

The company said it would target ore production at 330,000 tonnes per annum from the New South Wales site, with gold production at 50,000 ounces each year.

Production is expected to begin in 2012 with output of about 249,000 ounces of gold and 73,000 ounces of silver during a six-year period.

Cash costs are expected to be $A628 dollars per ounce.

"The feasibility study is a very robust document which paves the way for the development of a highly efficient underground mining operation at Dargues Reef," said Cortona managing director Peter van der Borgh.

Shares in the company fell after the announcement was made, and at 1313 AEDT were trading off 2.5 cents, or 12.5 per cent, at 17.5 cents.

READ THIS......MINE LIFE EXPECTANCY......

....expect not to have a life here in Majors Creek unless you work for the mine.....

BE CLEAR ABOUT THIS FACT........AND I QUOTE .......

"This underpins the robust economics of the operation, which is expected to generate strong cash flows and economic returns, providing a solid foundation for us to continue with our planned exploration programs aimed at increasing our resource base, extend the life of the operation, and potentially increase annual gold production rates" Mr van der Borgh said.

PLEASE READ THIS ....

http://www.wabusinessnews.com.au/en-story/1/85365/Cortona-confirms-feasibility-of-Dargues

here is an extract....


Cortona Resources says a positive Feasibility Study has confirmed the viability of its proposed underground Dargues Reef gold project in New South Wales.


Cortona's managing director Peter van der Borgh said the study was very positive.

"Key highlights of the Feasbility Study include the high grade mining inventory, with an average forecast head grade of over 5g/t and the low estimated cash operating costs of A$628/oz, which would position Dargues Reef towards the lowest quartile for Australian gold producers," he said.

"This underpins the robust economics of the operation, which is expected to generate strong cash flows and economic returns, providing a solid foundation for us to continue with our planned exploration programs aimed at increasing our resource base, extend the life of the operation, and potentially increase annual gold production rates" Mr van der Borgh said......

.........Australian gold company Cortona Resources Limited (ASX: CRC) ("Cortona" or "the Company") is pleased to report the completion of a positive Feasibility Study confirming the viability of the proposed development of the Dargues Reef Gold Project, part of its 100%-owned Majors Creek Gold Project located 60km east of Canberra in south-east NSW.

The Feasibility Study, which was independently prepared by Mining Plus Pty Ltd with participation and contribution from various other parties, has confirmed the technical and economic viability of the Dargues Reef Gold Project, paving the way for development of an average 50,000oz per annum gold mining operation (annual range 36,000oz to 65,000oz) with forecast low cash operating costs and an initial 6 year mine life.

This Phase 1 operation is expected to generate strong cash flows and robust economic returns, providing an excellent foundation for Cortona to continue its aggressive near-mine and regional exploration programs targeting additional resources within the broader Majors Creek Project, which are expected to extend the life of the operation, potentially increase annual gold production rates and ultimately enhance economic returns. To this end, two rigs are currently on-site.

Recent exploration has already confirmed the high prospectivity of the near-mine environment, resulting in the discovery of the Ruby Lode (12.6m @ 9.9g/t gold from 112 metres), located 150 metres north of the proposed Dargues Reef underground mine. Resource drilling is continuing at the Ruby Lode targeting an initial JORC resource estimate by early next year. This recent exploration success has not been incorporated in the Feasibility Study.

Key Feasibility Outcomes

The Feasibility Study has confirmed the economic and technical viability of a proposed compact and efficient underground mining operation at Dargues Reef, with ore to be partially processed in a state-of-the-art 330,000tpa treatment facility located on site.

Production will commence at 270,000tpa in 2012 and ramp up to 330,000tpa in 2013, resulting in total production of 248,900oz of gold and 73,144oz of silver over a 6-year period. This mining inventory does not include the recently discovered Ruby Lode, potential depth and strike extensions at Dargues Reef, or other near mine opportunities that will offer potential to extend the Phase 1 mine life and potentially increase annual production rates.....

"This underpins the robust economics of the operation, which is expected to generate strong cash flows and economic returns, providing a solid foundation for us to continue with our planned exploration programs aimed at increasing our resource base, extend the life of the operation, and potentially increase annual gold production rates" Mr van der Borgh said.

"Our recent success in discovering the near-surface Ruby Lode, located just 150 metres north of the proposed underground infrastructure at Dargues Reef, highlights the prospectivity of the near-mine environment. We have numerous promising exploration opportunities within an economic transportation distance of the proposed treatment facility, and in addition to that the Dargues Reef Gold resource remains open at depth and along strike."
"We expect to be operating at Majors Creek for many years to come and we are confident that the Phase 1 operation represents just the first stage of what we believe will be a long-life gold mining business in this area, bringing new employment and many economic benefits to communities in the region," Mr van der Borgh added.

very interesting read indeed....

here is the link to this SMH article of Nov 29 2010

http://www.smh.com.au/business/all-well-and-good-for-ukraine-junior-20101128-18cdw.html

here is an section from it.......i would suggest that we are not talking about a 5 year "life expectancy" of this mine but something more.....

RUBY IS GOLDThe near record gold prices are giving junior gold companies their best ever shot at establishing a cash flow by getting in to production.

And so it is with Cortona Resources. Any day now, the company will release a feasibility study into the development of its Dargues Reef gold project on the historic Majors Creek goldfield, some 60 kilometres east of Canberra.

The study is expected to confirm that Dargues will be a robust small-scale mine capable of churning out about 50,000 ounces a year at competitive cash costs of less than $650 an ounce, over an initial five- or six-year mine life, and after capital expenditure of $60-$70 million.

Given cash margins of more than $760 an ounce on current Australian dollar gold prices, Dargues Reef is shaping up as a nice earner for a company like Cortona with its share price of 18¢ for a (fully diluted) market capitalisation of $38 million.

But what would really get interest up in the Cortona story would be the potential for a longer mine life. Thanks to a concerted near-mine exploration effort, that might well be on the cards.

Last week Cortona reported more interesting gold hits at its Ruby Lode discovery, all of 150 metres north of the Dargues Reef deposit (1.44 million tonnes at 6.2 grams of gold a tonne for 287,000 contained ounces).

With hits like 12.6 metres at 9.9 grams of gold a tonne, 9 metres at 3.9 g/tonne and 6 metres at 3.5 g/tonne, Ruby Lode looks to have the makings of a significant new shallow gold deposit within easy striking distance of the underground development at Dargues Reef.

It is way too early for Cortona to have included anything from the discovery in the Dargues Reef feasibility study. But with two drilling rigs whirring away at Ruby Lode, the expectation is that the discovery - and potentially other near mine finds - will make Cortona's 2012 entry in the ranks of gold producers a longer term affair than the Dargues Reef feasibility will suggest.

COUNCIL MEETING 1PM IN THE NATIONAL THEATRE....

Council will be conducting the meeting this thursday from 1pm in the National Theatre .....and because crowds are expected it has been moved to this location........the Dargues Reef mine project will be discussed at this meeting and so the more people in attendence the better.

PARTNERING BETWEEN GOLD COMPANIES....

...perfect for mining in say...Mongarlowe....and processing at Majors Creek.....dont you think?!

Please watch this little presentation....Cortona, Majors Creek, Braidwood, and Mongarlowe are mentioned several times...

http://www.brr.com.au/event/66633/commissioners-gold-christopher-battye-exec

This link is interesting i feel as it clearly outlines WHY our region is being targeted for gold exploration and mining....

1. no native title issues
2. water availability
3. electricity availability

Mining requires lots of water, and lots of electricity...!
The costs to our community will be huge.