DEC - Del Norte - 1 Standard LG Vein - Hypothesis - NPV V2.0
NI 43-101 Report, March 31, 2020
US dollar
Au $1,800/oz
Ag $24/oz
USD/CAD 1.3
Del Norte Property, LG Vein, K Zone, LG Extension, Au/Ag
BC, Canada
page 87 of 108,
"The most prominent mineralized zone discovered on the property to date is the LG vein which has been traced by drilling for 1.2 km and vertical extent of 240 metres. The vein is open in both directions as well as at depth. The true width of the vein ranges from 0.5 to 1.25 m,"
estimated mineralized structure, 1,200 m X 240 m X 0.875 m, 100% continuity
estimated specific gravity, 2.7
from all results of drill program on the LG Vein area published in the Report,
average grade, Au 10 g/t, Ag 400 g/t
estimated resource, 680,400 t, Au 10 g/t, Ag 400 g/t
underground mining
dilution factor NA
recovery factor NA
mill feed 680,400 t
feed head Au 10 g/t, Ag 400 g/t
LOM 7 years
Au contained 218,754 ozs
Ag contained 8,750,147 ozs
Au recovery 85% (assumed)
Ag recovery 85% (assumed)
payable Au 185,011 ozs
payable Ag 7,426,469 ozs
NSR $505,883,000
royalty 1%
royalty $5,059,000
revenue $500,824,000
operating costs $133,000,000
EBITDA $367,824,000
initial capital $63,375,000
sustaining capital (included in operating costs)
closure $3,500,000
working capital $3,850,000
mining tax $39,929,000
provincial income tax 11%
provincial income tax $28,713,000
federal income tax 15%
federal income tax $39,153,000
initial capital loan $72,091,000
loan rate 6.75%
loan repayment $72,091,000 (yr1 to yr2)
interest payment $7,128,000 (yr1 to yr2)
debt free (yr2)
cash flow to shareholders $181,161,000 (yr2 to yr7)
interest 75%
FD shares ~300,000,000
1 year construction
NPV(5%) after tax $136,179,000 (yr-1 to yr7)
NPV per share C$0.443
7 years for permitting before construction
NPV(5%) after tax $92,171,000 (yr-8 to yr7)
NPV per share C$0.300
+-??%
For Reference Only
There is no certainty that the NPV will be realized.
SixBottle 2020-11-22