News was released this morning for Andean American Mining (TSX.V-AAG) (FWB-AQN) regarding the completion of the Optimized Feasibility Study for the Invicta Project. John Huguet states: “These improvements strengthen an already financially robust model and move us closer to completion of our major financing for Invicta. There is still much to learn about the geology at Invicta. Major structural reviews will begin in June 2010. At this time, we are tracing on an aggressive schedule for third quarter funding given the amount of job quality work still in front of us….”
Financial Analysis Highlights include average annual production to be 97,931 oz gold and average annual gold equivalent production of 160,857 oz. 5 year AVG annual free cash flow of $65,273,398 US, operating costs of $28.31 US/tonne and LOM (Life of Mine) cash cost per oz gold on a by-product basis $126.91 US, on a co-product basis $451.38 US. Production rates will be 3,000 tpd in Year 1, 4,000 tpd in Year 2 and 5,000 tpd in Years 3,4 and 5. Commercial production is anticipated in Q3 2011.