Project

2017 PEA Economics

PROJECT ECONOMICS ON THE FIRST ZONE AS STANDALONE OPERATIONS (2017 PEA)
PROJECT RETURNS @ DIFFFERENT GOLD PRICE

Project Economics Sensitivity (Pre-tax) (Base Case)  
   $1,150$1,200$1,250$1,300$1,350
 NPV@5%C$mm$422$510$597$685$772
 Internal Rate of Return (IRR) 17%19%21%23%25%
 Payback Period (from start of production)Years4.34.03.7 3.43.2
 LOM Cumulative Free Cashflows including CapexC$mm$884$1,029$1,174$1,319$1,464

 

Project Economics Sensitivity (Post-tax) (Base Case)  
   $1,150$1,200$1,250$1,300$1,350
 NPV@5%C$mm$352$418$482$539$595
 Internal Rate of Return (IRR) 16%18%19%21%23%
 Payback Period (from start of production)Years4.34.03.7 3.53.3
 LOM Cumulative Free Cashflows including CapexC$mm$754$860$963$1,049$1,138

OPEATIONAL AND COST METRICS

 UnitsYears 1 - 5 Avg.Years 1 - 10 Avg.LOM
Gold gradeg/t0.770.690.43
Strip Ratio 0.961.551.44
Annual Gold Production000oz15714292
Cash Cost/ ozUS$469555595
All-in-sustainable Cash CostUS$533619659
Total CostUS$667752792

INITIAL CAPITAL EXPENDITURES

Direct CostsInitial Capital Cost (C$ Million)
Overall Site16.6
Open Pit Mining97.3
Processing Plant (including Ore Handling)140.0
Tailing Management Facility & Water Management56.8
Environmental12.0
On-Site Infrastructure28.6
Off-Site Infrastructure14.3
Sub-Total365.6
Indirect Costs 
Project Indirects84.6
Owner’s Costs5.8
Contingencies51.1
Sub-Total141.5
Total Initial Capital Cost507.1

OPERATING COSTS

AreaUnit Cost (C$)
Mining ($/t mined)$1.96
Mining ($/t milled)$4.79
Processing ($/t milled)$4.01
Tailings ($/t milled)$0.05
G&A ($/t milled)$1.09
Total ($/t milled)$9.94

* See Cautionary Note Number 1

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