Cerro de Ore NPV increases to $380 million at $2050 ..And Net Cash flows increase to $320 million US at $2050 US POG
Highlights of PEA (all currency references are in U.S. dollars):
- Production highlights:
- Average annual gold production approaching 60,000 ounces (approximately 60,000 ounces to 70,000 ounces in years 1 through 4);
- 8.2-year mine life based on initial minable total of 59 Mt (million tonnes) of mineralization (0.37 g/t (gram per tonne) gold) heap leached at an average rate of approximately 20,000 tpd (tonnes per day) -- plus 0.4 g/t Au in years 1 through 4;
- 477,000 ounces of gold produced in loaded carbon/dore;
- LOM (life-of-mine) strip ratio of 0.3:1 (waste:mineralization);
- Robust economics using a gold price of $1,600/ounce:
- LOM all-in sustaining cost (AISC) of $873/ounce -- averaging $763/ounce in years 1 through 4;
- After-Tax NPV (net present value) at a 5-per-cent discount rate of $150.5-million and IRR (internal rate of return) of 111 per cent;
- Low capital intensity project with rapid payback:
- Preproduction capital costs of $28.1-million (includes 30 per cent contingency);
- Payback period of 11 months;
- Used crushing plant already purchased reduces up front capital requirements;
- Significant upside:
- Mineralization appears open in multiple directions, as well as to depth;
- Additional metallurgical testing to examine amenability of gold recovery from deeper sulphide zones of mineralization not accounted for in current resource calculations and mine plans (some early indications that material may prove to be leachable);
- Updated inferred mineral resource estimate containing 67 million tonnes of 0.37 g/t Au (790,000 ounces of contained gold) based on an upward revision of the base case resource gold price to $1,700/ounce.