RE:RE:RE:RE:RE:ExpectationsFrom Page 11 of the Q3 MDA
2023-q3-mda-vgcx.pdf On February 24, 2023, the Company released the results of its updated National Instrument 43-101 technical report on its 100% owned Eagle Gold Mine. The 2023 Eagle Technical Report highlights an increasing gold production profile, long mine life, and robust economics.
Technical Report Highlights The updated mine plan considers cost and operating data from the last three years of operations at the Eagle Gold Mine. Optimizations incorporated into this 2023 Eagle Technical Report include year-round stacking on the heap leach facility (“HLF”), stockpiling of lower grade material for end of mine life processing, and utilization of a mobile crusher to supplement and increase production rates. Key highlights of the updated plan are:
• After-tax net present value (“NPV”) at a 5% discount of $954 million ($1,257 million pre-tax), at US$1,700 per ounce of gold and a US$:C$ exchange rate of 0.75. • Average gold production of 202,000 ounces per year over the first 8 years, with peak production of 219,000 gold ounces in 2025.
• Average free cash flow1 (“FCF”) of $166 million per year for the first 8 years with a total of $1,602 million of FCF over the LOM.
• Total gold production of 2,048,000 ounces over a mine life of 12 years. This total does not include gold production prior to 31 December 2022.
• LOM AISC1 of US$1,114 per ounce of gold providing significant operating and profit margins at current gold prices.
• Throughput increase to steady-state level of 11.5 million tonnes processed per annum during 2025. • Industry leading strip ratio of 0.99.
• Total Proven and Probable Reserves, as at December 31, 2022, of 124 million tonnes at 0.65 grams of gold per tonne for 2,584,000 contained gold ounces.
• Total Mineral Resources, as at December 31, 2022, of 245 million tonnes at 0.59 grams of gold per tonne for 4,665,000 gold ounces in the Measured and Indicated category. An additional 36 million tonnes at 0.63 grams of gold per tonne for 704,000 gold ounces are included in the Inferred category.