My Guess for the 100 Mill Stream..."Rainy River Resources (TSX: T.RR, Stock Forum) Thursday announced the receipt of an updated and revised Preliminary Economic Assessment (PEA) for its 100% owned Rainy River Gold Project in northwestern Ontario.
During the first 10 years of production, average annual production is expected to be 308,000 gold ounces and 478,000 silver ounces, while the average mill head grade of 1.45 g/t gold is an increase of 50% over the first PEA.
The company can anticipate average cash costs of US$486 per ounce gold (including royalties and net of silver credits). Life-of-mine pre-tax Net Present Value (at a 5% discount rate) is $846 million, with an internal rate of return of 21.0% and a payback of 3.8 years based on US$1250 per ounce gold and US$25 per ounce silver."