Vannessa Ventures Ltd. said Wednesday that a feasibility study on its gold mine should be finished later this month or next.

Crucitas open pit gold mine near the Nicaraguan border is being developed by Vannessa’s wholly owned subsidiary, Industrias Infinito S.A.

The company outlined its timetable as it announced that it had borrowed $1.5 million to pay for completing the study and for mine machinery.

The controversial mine has generated an extensive amount of paperwork. The company said that all infrastructure has been defined and the cost estimated, but a more favorable agreement with the local authorities to improve the access road requires that new estimates be prepared. Environmental protection and monitoring programs have been designed and estimated, together with a closure plan, and these are in the process of a
final review, the company said.

The loan was from Exploram Enterprises Ltd. and is payable on demand after Aug. 31. The agreement is secured by the assets of the company. The money also will go to buy grinding equipment.

The feasibility study is being carried out by Micon International Ltd., the company said.

The company said that an agreement with the local electrical utility has been negotiated to supply power.

Because the company uses mercury to leach gold from crushed rock, the project has raised the concern of local environmentalists who fear the chemical will seep into the nearby Río San Juan. However others see the project as a way to bring jobs to the northern zone.