Mining companies in Canada were again in the news on the last day of August.
Vancouver-based EROS Resources Corp. (TSX-Venture: ERC) saw its shares go up the ladder Monday, when most companies did not, on word of progress in its permitting process for the Bell Mountain Mine (gold and silver) in Churchill County, Nevada.
EROS-owned Bell Mountain Exploration has put forward a Water Pollution Control Permit Application (WPCPA) to the Nevada Bureau of Mining Regulation and Reclamation (BMRR).
According to the BMRR, facilities utilizing chemicals for processing ores in Nevada are generally required to meet a zero-discharge performance standard. Water Pollution Control Permits are issued to an operator by the BMRR to ensure operation of the facility will not result in degradation of waters of the State. This is a major permit issued by the State of Nevada.
Bell Mountain is located near the Nevada town of Fallon, and presented a Preliminary Economic Assessment three years ago, which included Pre-tax net present value ("NPV" @ 5% and internal rate of return ("IRR") of $17.6 million and 41.4% respectively, along with a payback period of 1.7 years, using a $1,300/oz U.S. price of gold and a $17.50/oz U.S. price of silver. Also of interest was its after tax NPV @ 5% and IRR of $9.3M and 24.7% respectively, with a payback period of 2.7 years.
EROS shares advanced a penny, or 11.1% Monday noon hour EDT to 10 cents, on volume of 241,000 shares.
