GoldQuest Mining to push ahead with feasibility studies at Romero project

(MENAFN- ProactiveInvestors)TSX-Venture listed GoldQuest Mining Corp (CVE: GQC) said it will push ahead with both a pre-feasibility and a feasibility study on its Romero project in the Dominican Republic.   It has selected the engineering and consulting firm Met-Chem to carry out the work.    The PFS is expected to be completed in the second quarter of next year while the full feasibility study is slated for completion by the end of 2016.    GoldQuest said it was 'adequately funded' for the programme after closing a $3.5mln funding last week.   "We are pleased to have engaged Met-Chem who have a stellar mining and engineering track record in both the Dominican Republic mining and elsewhere" said chief executive Julio Espaillat.   "The greater part of field work for the Romero pre-feasibility has been completed so the studies will advance rapidly."   Romero boasts a gold equivalent resource of over 3mln ounces with 2.4mln in the higher confidence 'indicated' category.   A preliminary economic assessment of the project assigned a net present value of US$355mln to the mine using a 6% discount rate.  The internal rate of return is put at 46% and payback on the pre-production capital investment of US$143mln is expected to be just over two and half years.    But what stands out is the forecast all in sustaining cost of the operation which also process silver and zinc.   This is put at just US$572 per ounce for an underground mine producing 117000 of gold equivalent ounces per year.   In other words Romero if or when it comes into production is at the very bottom of the international cost curve.