Project

2017 PEA Economics

Project Economics on the First Zone as Standalone Operation (2017 PEA) &

Project Returns at Different Gold Prices

 

Project Economics Sensitivity (Pre-tax)   (Base Case)  
Gold PriceC$$1,150$1,200$1,250$1,300$1,350
NPV @ 5%C$mm$422$510$597$685$772
Internal Rate of Return (IRR)%17%19%21%23%25%
Payback Period (from start of production)Years4.34.03.73.43.2
LOM Cumulative Free Cashflows Including CapexC$mm$884$1,029$1,174$1,319$1,464

 

Project Economics Sensitivity (Post-tax)

 (Base Case)  
 Gold PriceC$$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

Operational & 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-Total$365.6
Indirect Costs 
Project Indirects84.6
Owner’s Costs5.8
Contingencies51.1
Sub-Total$141.5
Total Initial Capital Cost$507.1

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

Cautionary Statement Regarding Preliminary Economic Assessment

Preliminary Economic Assessment is preliminary in nature and may include measured and indicated mineral resources as well as inferred mineral resource.  A measured or indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling.  Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. Mineral resources are not mineral reserves do not have demonstrated economic viability.  There is no certainty that the PEA will be realized.

 

The 2017 PEA was prepared by Moose Mountain Technical Services (MMTS) under the direction of Marc Schulte, P. Eng., a Qualified Person (as defined under National Instrument 43-101) who is independent of the Company. The technical report presenting the results of the PEA was filed on April 10, 2017.

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