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  1. 1,533 Posts.
    I know this news is 11 days old, but keep it in mind - this stock is moving ahead slowly but surely and could spike soon.

    Red Back jumps on Chirano study results
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    16 May 2002
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    RED Back Mining shares jumped as much as 12% to 32c today after the Perth-based explorer said a study has showed its Chirano gold project in Ghana could produce 140,000 ounces of the precious metal a year.
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    Red Back shares climbed 3.5c to a high of 32c before slipping back to 30c.
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    An analysis of the pit optimisation studies at Chirano by consultants Resource Service Group estimated that at a gold price of US$300/oz the operation could process 2 million tonnes of ore grading 2.3gpt for 140,000ozpa over a seven-and-a-half-year mine life.
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    RSG estimated a pre-capital undiscounted cash flow of US$97.6 million, and a pre-capital net present value of US$73.6 million at an 8% discount rate.
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    Lycopodium is undertaking a $3.6 million bankable feasibility on Chirano, which is expected to be completed in October to coincide with completion of the environmental impact statement.
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    The BFS will also examine the suitability of relocating Resolute Mining's Obotan gold plant in Ghana to Chirano and adapting the plant design to Chirano ore.
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    Perth-based Resolute last month entered into a strategic relationship with Red Back that includes first right of refusal over the Obotan plant.
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    Lycopodium designed the Obotan facility for Resolute in 1996, as well as Ashanti Goldfields' nearby Bibiana plant. It has been awarded the contract to complete the engineering and processing design for Chirano.
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    Chirano hosts indicated and inferred resources of 26.77 million tonnes grading 2.2gpt for 1.87 million ounces of gold.
 
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