Perama at a glanceEconomics and Potential
The Perama Hill Project is a surface, high grade oxide gold deposit which could generate a very robust rate of return with very little technical risk. The Net Present Value ("NPV") of the project is summarized below:
Resources 11.7 Mt @ 3.62g/t Gold and 8.2 g/t Silver
Resources - Gold 1.4 million ounces Gold (1.2M oz recoverable)
Strip Ratio 0.4:1
Recovery 90% Gold and 60% Silver
Project Life 9 years
Average Annual Production 131,000 oz Gold (170,000 oz/year first 3 years)
Capital Investment (€77.6M) US$97 million including sustaining capital
Cash Operating Costs $171/oz
Frontier-IRR @ $500 Gold 44% (including acquisition & royalty cost)
NPV* @ $500 Gold $162 million undiscounted (€130 million)
* based on Kvaerner Engineering feasibility study with recent cost updates; monetary values in US dollars (exchange rate used US$1.25 = €1.00)
Frontier Pacific is focused on the permitting and social acceptance aspects of the project.
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