ABN .135 SP VS VRO .12 SPABN:
PEA 0 Validated Measured Gold 0 Validated Indicated gold 0 Validated Inferred gold 0 VELARO RESOURCES VRO
In January, 2017 ValOro announced the Tepal Preliminary Economic Assessment (“PEA”) using reduced metal prices from the PFS and redesigning the mine plan to a more efficient and smaller throughput of 22,000 tonnes per day. The PEA used US$1,250/Oz. Gold Price and US$2.50/LB Copper Price resulting in a US$169M After-Tax NPV (5%) and 24% IRR. The initial capex was reduced 40% to US$214M: - Pre-tax: NPV5% of $299 million and 36% IRR with a 1.6-year payback period
- After-tax: NPV5% of $169 million and 24% IRR with a 2.3-year payback period
- Production averages 79,000 oz. of gold and 32 Mlbs of copper over a 10-year mine life
- Life of mine (“LOM”) average cash cost of $313/oz. gold and LOM average cash cost plus sustaining cost of $396/oz. gold (net of copper and silver by-product credits)
- Initial capital costs estimated at $214 million with a 2-year pre-production period
- LOM sustaining and closure capital costs estimated at $87 million
Up to 2013, the primary focus of the company was to expand the resource and complete both the PFS and permit the project through submittal of a MIA, which was successfully done. During 2017 and 2018, Valoro determined that it was an opportune time to review all of the data collected on the project and develop an exploration plan based on first principles. This has been completed and awaits funding availability for a drill program.
Resource Estimation Details
Results from the update resource estimate are as follows: Updated Total Tepal Project Resource Estimate1 - March 2012 | Category | Tonnes (t) | Au (g/t) | Cu (%) | Ag (g/t) | Mo (%) | Au (oz.) | Cu (lbs) | AuEq2 (oz.) |
| Measured | 34,100,000 | 0.48 | 0.25 | 0.95 | 0.002 | 528,000 | 185,000,000 | 1,037,000 |
| Indicated | 153,700,000 | 0.26 | 0.19 | 1.67 | 0.004 | 1,276,000 | 628,000,000 | 3,003,000 |
| Meas & Ind | 187,800,000 | 0.30 | 0.20 | 1.54 | 0.004 | 1,804,000 | 813,000,000 | 4,040,000 |
| Inferred | 35,700,000 | 0.16 | 0.15 | 1.68 | 0.006 | 182,000 | 120,000,000 | 512,000 |