California Gold Mining (TSX: V.CGM, Stock Forum) Friday filed a Preliminary Economic Assessment (PEA) for its Dingman Gold Project in Ontario, this according to a company news release.
The PEA concludes, in part, that the life of mine plan for the Dingman Project indicates that mining and processing of 10.64 Mt at an average grade of 0.92 g/t gold with a mine life of five years, has the potential to produce approximately 290,000 ounces of gold.
Break-even pre-tax undiscounted cash flow for the Dingman Project could occur at a gold price of approximately US$1,650 and that using a gold price of US$1,825 the Project could achieve an internal rate of return of 15%. At a base gold price of US$1,500, however, the Dingman Project is not expected to be economically feasible.