Feasibility Report ReleasedPreliminary feasibility report has been released and it doesn't look too bad. Some of the highlights are:
1. Pre-production capital expenditures of C$22.33M
2. Initial production of 40,000 oz per year
3. Average production cost is approx $363/oz.
Quotes:
Mining and Processing:
- Mining plan for approximately 830,000 tons (753,000 tonnes) at an average grade 0.179 opt (6.14 grams per tonne) inclusive of mining dilution and losses (approximately 149,000 ounces)
- A mining rate of 1,000 tons per day (750 tons mill feed and 250 tons waste) for a mine life of approximately 3 years and a total project life of approximately 3.8 years.
- Milling rate of 1,300 tons per day on a 4 day per week basis at an estimated recovery of 92% (approximately 137,400 ounces)
Economic Analysis:
- An after tax internal rate of return (IRR) of 18.9% based on US$ 725 per ounce gold and an exchange rate of C$1.20 per US$1.00
- Cumulative undiscounted cash flow of C$16.64 M and an NPV of C$7.73M at an 8% discount rate and an NPV of C$10.66M at a 5% discount rate.
- Pre-production capital expenditures of C$22.33M and sustaining capital expenditures of C$13.95M (undiscounted and includes a C$4.15M contingency)
- Average cash operating cost of US$362.38 per ounce or C$72.00 per ton milled