RE: Rainy River Gold Camp I do not own v.cyy but I have followed the project for some time.
These are some of the highlights from the PEA released last week.
Rainy River Gold Camp will be a major focus at the PDAC in March I suspect.
PEA HIGHLIGHTS:
- Base case pre-tax NPV of $111 million, 20.1% IRR (at $1,472/oz gold); Pre-tax NPV of $205 million, 31.2% IRR (at $1,700/oz gold) at a discount rate of 5%
- Base case after-tax NPV of $79 million, 17.0% IRR (at $1,472/oz gold); After-tax NPV of $143 million, 25.7% IRR (at $1,700/oz gold) at a discount rate of 5%
- Initial 10 year mine life producing 604,673 ounces of gold from only the Cameron and Dubenski gold deposits
- Average annual production of 61,000 ounces of gold at an average cash cost of $852/oz; Average open-pit diluted grade of 1.96 g/t Au, average diluted underground grade of 2.60 g/t Au
- Life of mine gold recoveries averaging 91.5%
- Significant potential to increase grade in the first two years and extend mine life through additional exploration and resource development success at nearby satellite prospects owned by the Company
- Estimated initial development capital expenditure of $110 million, including 20% contingency
- High level of confidence with Measured and Indicated resources accounting for 75% of the total material included in the PEA:
- Cameron Gold Deposit open pit (47% Measured, 52% Indicated and 1% Inferred)
- Dubenski Gold Deposit open pit (88% Indicated and 12% Inferred)
- Cameron Gold Deposit underground (3% Measured, 25% Indicated and 72% Inferred)
- 2,750 tonne per day (1 million tonne per annum) conventional crush, grind, and CIL processing route
- Definitive Feasibility Study ("DFS") to be completed by the end of 2013.
"The preliminary economic study provides a solid base from which to further develop the potential of a rapidly evolving, district-wide production camp centered around Cameron, and represents a major milestone for the Company. Along with our plans for continued exploration at the numerous satellite prospects in the area, we believe that the economics, favourable location and infrastructure at Cameron make it a compelling development project moving forward," stated Michael Naylor, President and CEO of Coventry Resources Inc. "In management's view, the economics determined in the PEA provide a strong incentive to undertake further geotechnical, metallurgical and engineering studies and commence permitting with the objective to complete a definitive feasibility study by the end of 2013."
In addition to the currently defined project at Cameron, the Company has a number of high grade gold prospects and exploration targets within close proximity (10 km) that warrant further exploration, including the Dogpaw Gold Prospect ("Dogpaw") and the McLennan Gold Prospect ("McLennan") where a number of high grade historical drill intercepts have been recorded. The Company has commenced a Mineral Resource Estimate at Dogpaw, which is due for completion by the end of the March quarter, and it is anticipated that a diamond drilling program will commence at McLennan in February 2013 (refer to Exploration Potential section below). It is expected that continued exploration results and a pending Resource Estimate for Dogpaw will be incorporated into the upcoming definitive feasibility study. Management anticipates that the inclusion of additional resources from these adjacent target areas will have a positive effect on the economics of the rapidly evolving Cameron Gold Camp Project.