For comparative purposes (an economic PEA) PEA from Queenston Mining (Osisko takeover) February 2012 using gold price of $1275
Highlights of the PEA
Base Case Scenario: (gold price of US$1,275/oz (approximate 3 years trailing average), copper price of
US$3.00/lb and an exchange rate of US$0.96 = CDN$1.00; all other dollar amounts are expressed in
Canadian dollars):
Underground mining operation with a 10 year mine life
Processing throughput averaging 2,000 tonnes per day (“tpd”)
Life-of-mine average annual production 120,000 oz gold and 5.3 M lbs copper
Life-of-mine metal production of 1.1 M oz of gold and 50.5 M lbs of copper
Average life of mine cash cost of US$386/oz (net of copper credits)
Pre-tax Net Present Value (“NPV”) (at a 5% discount rate) of CDN$345 M, Internal Rate of Return
(“IRR”) of 26.5% and a payback in approximately 2.5 years from start of production. After-tax NPV
(at a 5% discount rate) of CDN$233 Million, IRR of 22.1%
Using current metal prices (US$1,700/oz for Au and US$3.80/lb for Cu) pre-tax NPV of CDN$688 M,
IRR of 41.6% and a payback of approximately 1.5 years from start of commercial production. Aftertax,
NPV of CDN$475 M and IRR of 35.0%