Cambridge Mineral Resources has completed the feasibility study for the Rasuhuilca silver-gold project.
The miner expects to produce 1m ounces of silver and 15,000 ounces of gold over a five year period. The fully depreciated cost of producing the silver is $8 per ounce.
The study uses a silver price of $14.50 per ounce and a gold price of $900 per ounce. The current silver price is similar but the gold price has fallen by around 10%.
Over five years the study estimated that the mine could make post tax profits of $9m over five years.
At 1.5p a share, Cambridge is valued at £4.37m.
Cambridge raised £400,000 at 2p a share in March 2008. That won’t last it long, though.
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