Otso Gold has appointed Coffey Geotechnics Ltd, a Tetra Tech Company, to complete and publish an updated NI 43-101 feasibility study for the restart of the Otso gold mine, in Finland.
Tetra Tech is running a live model to support and optimise the current drill program at the project that will inform the feasibility study.
“The feasibility study will be particularly focused on the optimised mine plan to underpin the return to production on a long-term sustainable basis,” the company said.
The drill program will also seek to upgrade the resources. Further, pursuant to the requirements of NI 43-101, all areas of the Otso gold mine will be included in the feasibility study, therefore the company will seek to use the opportunity to optimise the process plant further, it said.
“The company notes that its process plant has a 2 Mt nameplate capacity and has previously produced at recoveries above the modelling on which the process plant was designed and built,” Otso said. “It is also noted that the company’s initial decision to proceed to production was made without first establishing mineral reserves supported by a feasibility study.”
Brian Wesson, President and CEO, said: “The appointment of Tetra Tech for the feasibility study is another important milestone in the return to production of the Otso gold mine.
“Management judged that the completion of a feasibility study was necessary notwithstanding the mine having a process plant, infrastructure and licences all in place – to provide further confidence in the company’s restart plan and the economics of a competent sustainable mine plan. The company has been working closely with Tetra Tech to expedite the feasibility study.”
Back in March 2019, Nordic Gold (the previous owners of the mine) terminated its agreement with mining contractor Tallqvist Oy and decided to place the Laiva (now Otso) gold mine on care and maintenance, months after pouring first gold.