Gold processing plant

 

As reported in the foreword, Origin is also planning to build a 300 tonnes per day (TPD) gold processing plant in two phases, 150 and 300 TPD in the same area of the La Pantera concession at San Martin De Loba.

 

In a radius of about 50 km from the selected plant site there are several small gold producers that mine and process, via the use of mercury, high grade (from 15 g/t Au to more than 100 g/t Au) narrow gold bearing veins. The big mining industry cannot do that. Mercury is a great polluting agent. Its use is now banned in Colombia. As it is, it was found that the small miners are being paid for about 30-40% of the value of what they mine.

 

Pursuant to extensive investigations, samplings, gold recovery tests in Canada and numerous contacts with small miners conducted by the company in the last two years, Origin has come to the conclusion that it could build within 18 months a 150/300 tpd gold milling facility and buy, at a very good price, the gold production from the small miners. All that on a win-win situation for everybody (the miners, Origin and the Government) and for the benefit of the environment.

 

All this work initiated by Origin was done under the supervision, and/or management of the consulting metallurgical firm Bumigeme of Montreal, Daniel Goffaux of the DG Consulting Inc. and Julio Porras Ramirez of LACC Minerals – Colombia.

 

All of the ensuing informations have been drawn from the report submitted by Bumigeme and the other two experts dated May 7, 2018.

 

Artisan miners incentives to work with Origin Gold Corporation 

  • Artisan miners revenue would increase by 27% at actual production rate.
  • Artisan miners production could increase by an additional 30% as no time is spent on processing.
  • Better gold recovery with Origin Gold Corporation
  • Elimination of the illegal use of mercury.
  • Artisan miners will operate legally and will be entitled to Social Security.
  • Better and safer mining practices.

 

Production of green gold 

  • The mill use state of the art technology.
  • Abiding by the strict environmental norms of the World Bank.
  • Minimum consumption of the chemical by using gravimetric concentration.
  • Doing away with mercury.
  • Recycling of all the water used in the process.
  • No risk of tailings spills by opting for dry tailings.
  • Origin Gold Corporation would produce “Green Gold” – Green Gold is gold whose provenance is known and legal.

 

Mill operation parameters

  •  Mill capacity: 150/300 tpd.
  •  Gold recovery: 90%
  •  Gold Grade of feed: 20.7 g/t Au.
  •  Gold price: US$ 1,200.
  •  CAPEX: US$ 6.6M/10.4M.
  •   Operating cost 150/300 tpd.

–  Gold Mineral purchase: US$ 686/707/oz Au.

–  Milling and G&A costs: US$ 144/111/oz Au.