Castle Gold Inc. (CSG-V $0.35 | NR)
Castle Gold’s producing El Castillo mine is located about an hour north of Durango City in Durango, Mexico.
It is located near a paved highway on easy terrain. While currently producing at only 25,000 to 30,000
ounces per year, what we liked about this project is the potential upside. There are synergies and savings to
be had in multiple aspects of this operation including:
•
Upgrading the mining fleet to process more tonnes per day
•
Infill drilling to upgrade resource and improve the life-of-mine for an expanded production scenario
•
Increasing the capacity of the screening-crushing plant to accommodate more tonnes and lower crushing
cost on a unit basis
•
Add stacker/conveyors to lower the ore handling costs
•
Add the back half of the ADR plant and furnace on-site to lower processing and carbon transportation
Orgy
