Canadian mining company Greystar made stellar gains after a positive scoping stage preliminary assessment for an underground-only operation at its 100%-owned Angostura gold-silver project in north-eastern Colombia.

The scoping study, which evaluated roasting, bio-oxidation and pressure oxidation processing treatments for the production from Angostura underground resources, estimated that 1.9 million ounces of gold, 7.7 million ounces of silver and 228,316 pounds of copper could be produced over a 14-year mine life.

The study estimates that over the first seven full years of production the mine could generate 209,458 of gold equivalent (AuEq) ounces and generate a pre-tax internal rate of return (IRR) of 21.4%. Also according to said study, the pre-tax net present value (NPV)(at a 5% discount rate) of the mine is of $400.2 million.

The mine is expected to have a mine life of 14 years at a planned production rate of up to 4,000 tonnes per day.

Greystar has also indicated that the potential exists to increase production or enhance mine life (or both) by the further exploration and development of known areas of mineralization.

Lastly, and in a separate statement, the company has notified shareholders that it has decided to, "cancel the admission of its common shares to trading on the AIM Market of the London Stock Exchange ("AIM") with effect from 7:00 a.m. (BST) on 3 June 2011". Greystar's board concluded that because of its mainly Canadian shareholder base, as well as the relatively low volume of trading in shares on AIM, the costs incurred in maintaining a secondary listing exceed the benefits.


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