Seafield Resources (TSX: V.SFF, Stock Forum) Wednesday announced results of an independent updated Preliminary Economic Assessment (PEA) for the higher grade zone of its 100%-owned Miraflores Deposit in Colombia, this according to a company news release.
Highlights included average annual gold production of 42,442 ounces in the first 11 years, with life of mine gold production of 529,453 ounces, in addition to 311,597 ounces of silver.
The average cash operating cost, net of refining, transportation, royalties, and silver credit, is expected to be US$724.77 per ounce during the first 11 years of production.
The zone is expected to generate a pre-tax IRR of 23% and NPV (5%) of US$141.3 million and post-tax IRR of 20% and NPV (5%) of US$98.0 million, based on a gold price of US$1,500/oz and a silver price of US$30/oz.
Seafield’s share price climbed 18% to 6.5 cents on Wednesday.