Precious Metals May 2024...One of my producers...181 m shares , market cap $2.05 million Project is an gold underground mine in Serbia with current resources of 1.6 m ounces, producing 1.3 million ounces over 10 years at an average grade of 5.8 grams per ton. Note that the NPV 5% discounted after tax is $941 million US = $1.25 billion in CAD. Note Very Low AISC of just $715 US per ounce . Replace Serbia underground mine with a Queenie open pit mine with average grades of 10 grams per ton and 160,000 ounces of gold for a 10 year mine life ( how conservative can I get ) and your NPV5 after tax would be well over $2 billion CAD and the AISC would be less than $400 US per ounce. These estimates have already been internally scoped by NFG. Its why the tolling arrangement with MAE will proceed, as 3 years tolled at 100,000 ounces per year will fully fund the cost of a new mine and mill onsite at Queenie. Even better, acquiring MAE and 100:000 ounces /year would double NFG cash flows for the first three years
GLTA
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Dundee Precious pegs NPV at $588M (U.S.) at Coka Rakita
2024-05-01 17:14 ET - News Release
Mr. David Rae reports
DUNDEE PRECIOUS METALS ANNOUNCES POSITIVE PRELIMINARY ECONOMIC ASSESSMENT FOR THE COKA RAKITA PROJECT IN SERBIA, INCLUDING IRR OF 33 per cent AND NPV OF $588M
Dundee Precious Metals Inc. has released the results of a preliminary economic assessment for its Coka Rakita project in Serbia. The PEA supports an underground mining operation with an 850,000-tonne-per-year processing facility and an initial 10-year mine life, and highlights Coka Rakita's potential to offer meaningful production growth with attractive all-in sustaining costs and very robust economics at a $1,700-per-ounce gold price assumption. Based on the positive results of the PEA, the company is proceeding with a prefeasibility study and project permitting activities.
PEA highlights
(All dollar amounts in this news release are expressed in U.S. dollars unless otherwise noted. The reader is advised that the PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.)
- High-margin production profile: annual production expected to average 164,000 ounces of gold (first five full years) with all-in sustaining costs expected to be in the lowest quartile, providing the potential for very strong margins;
- Robust returns highlight an attractive project at a $1,700-per-ounce-gold price assumption: after-tax net present value of $588-million with an internal rate of return of 33 per cent and payback after 2.4 years; the project's economics are even more attractive in today's gold price environment;
- Attractive organic growth opportunity leveraging Dundee Precious's mining, processing and regional expertise: Coka Rakita benefits from established infrastructure, including nearby existing roads and power lines; the project is located in close regional proximity to Dundee Precious's existing operations in Bulgaria, and the PEA leverages the company's underground mining and processing expertise in terms of mining methods and flowsheet; the company has had a local presence in Serbia since 2004, has developed strong relationships in the region and will continue to pro-actively engage with all stakeholders as the project advances;
- Significant exploration potential across four exploration licences: Dundee Precious is continuing its scout drilling program focused on aggressively pursuing additional skarn targets on the Coka Rakita licence and the company's three additional licences to the north and the south.
"The PEA confirms our view that Coka Rakita is a very robust project with the potential to add strong economic returns and very high-margin gold production growth to our portfolio," said David Rae, president and chief executive officer of Dundee Precious.
"The results of the PEA are a testament not only to the quality of Coka Rakita, but also [to] our exploration and technical teams, who have accelerated the project from the initial discovery we announced in 2023 to a PEA in under 16 months.
"As a stand-alone project offering a 33-per-cent IRR at a gold price of $1,700 per ounce, Coka Rakita is a very attractive asset, and we also continue to be excited by the exploration potential we are seeing at Coka Rakita and the three adjacent licences we hold. We are continuing to aggressively explore for additional skarn targets in the area."
Preliminary economic assessment overview
The PEA contemplates underground mining of the Coka Rakita project with a relatively standard comminution, gravity and flotation flow sheet to treat 850,000 tonnes per year of material, producing saleable gravity and flotation concentrates.
The project is located approximately 35 kilometres northwest of the city of Bor in Serbia, which is a region of the country with a long mining history, is proximal to existing roads and power lines, and is approximately 320 kilometres northwest of Dundee Precious's Chelopech mine in Bulgaria, which will allow easy access to existing technical support functions. The project is also a strong fit with the company's underground mining and processing expertise.
The PEA assumes start of construction in mid-2026 with first production of concentrate targeted for the first half of 2028.