Zephyr applies for mine permit for its Dawson gold project in Colorado
(Kitco News) - Zephyr Minerals (TSXV:ZFR) (OTC:ZPHYF) announced Monday that it has submitted the application for a mining permit for the Dawson gold deposit with the Colorado Department of Reclamation and Mine Safety. The application is for a proposed underground mine, mill, mine support facilities and a dry stack tailings facility.
The company said that success in obtaining a mining permit at Dawson will enable the implementation of an underground development program which will include construction of drill stations to undertake infill drilling on the current resource as well as further drilling at depth.
According to a press-release, a Preliminary Economic Assessment ("PEA") completed on the Dawson deposit in 2017 demonstrates robust economics at a gold price of US$1,250/oz. The PEA assumes 409,000 tonnes of mined/milled material with a diluted grade of 9.2 g/t gold, for recovery of 111,000 oz. gold at an all-in sustaining cost of US$692/oz.
President & CEO Loren Komperdo stated, "Given the proposed mine is entirely on private lands and with a very small environmental footprint, and the potential economic benefits to the community, we are optimistic on being successful with the application. In this event, it will be an important milestone for Zephyr, enabling the next step in the development of the Dawson gold deposit."
In addition to the Dawson-Green Mountain property, the company is assessing opportunities in Zimbabwe due to recent favourable changes in mineral claims ownership combined with underexplored Archean age, gold mineralized greenstone belts.