So..... HonestAbe, I saw SPA's PEA..... Ouch! Hello HA,
I guess my geologist bud knew the score afterall (I never doubted him), capex differences are huge ......$213 million for MDR vs $447 million for SPA.
Average cost per ounce (Life of mine) $407 for MDR, $625 for SPA, wow, that is SIGNIFICANT!
Bottom Line, Stick with SL, he'll steer you right.
Cheers, (Holding those tickets for you buddy-pal HA), you best new bud, SL
MDR's LINDERO:
Pre-tax Project Economics(1)(2) |
| Gold price | Net Present Value (US$ million) | IRR | Payback |
| ($US/oz) | Discount Rate (%) | (%) | (years) |
| | 4.0% | 6.0% | 8.0% | | |
| $850(3) | $237 | $194 | $157 | 25.9% | 2.8 |
| $975 | $363 | $305 | $256 | 35.4% | 2.2 |
| $1,100 | $490 | $416 | $355 | 44.1% | 1.9 |
- Project economics have been reported by AMEC on a pre-tax basis.
- Project economics include a 3% provincial royalty.
- Base case project scenario.
- 1.9 million ounces of gold reserves @ 0.19 g/t cut-off.
- Capital expenditures of US$213 million (includes a US$18 million contingency).
- 9.5 year mine life with gold production totaling 1.4 million ounces at a cash cost of US$407/oz.
- 161,000 oz gold average annual production in years 1-5 at a cash cost of US$373/oz.
- 150,000 oz gold average annual production in years 1-8.
SPAINISH MOUNTAIN:
KEY ECONOMIC PARAMETERS
Average annual gold production (years 1 to 5) (ounces) 213,800
Average annual gold production life of mine (ounces) 172,400
Total cash cost, years 1 to 5 (US$ per ounce) $570
Total cash cost, LOM (US$ per ounce) $625
Operating cost ($ per tonne plantfeed) $10.14
Mine life 10 years
Overall gold recovery 90%
Average gold grade of ore processed 0.51 g/t
Initial capital cost $447-million
Pretax undiscounted cumulative net cash flow $411-million
Pretax NPV at 5% $209-million
Pretax IRR 14.7%
Payback (from start of milling) 5 years