Minera Alamos announced a preliminary economic assessment for its La Fortuna gold project with an after-tax internal rate of return of 93%.
The company (CVE:MAI) traded up 14% to 12 cents a share.
La Fortuna project, which includes a historic mine site within the concession, is located 100 km northeast of the city of Culiacan, Sinaloa. In 2008 the company modeled a measured and indicated resource at La Fortuna of 4,800,000 tonnes at 2.0 g/t gold at a 0.50 g/t gold cutoff grade.
The company's CEO touted the company's strategic relationship with Osisko Royalties as Minera Alamos attempts to advance the project.
"As our engineering work progresses we continue to find opportunities to reduce the initial project capital requirements and improve overall project economics," commented Darren Koningen, Chief Executive Officer in a news release.
"Coupled with our strategic partnership with Osisko Gold Royalties that includes an option to provide a significant portion of the project capital requirements in return for a project royalty, these additional optimizations will greatly reduce the upfront funding requirements of this already low capital cost operation."
Osisko Royalties retains the right to a 19.9% equity position in Minera Alamos.
Written with material from Minera Alamos news release. Creative Commons image of granite "pop" courtesy of Marc Climent.