Project

2017 PEA vs. 2012 PEA

  2012 PEA
100% Resource
First Zone
(Standalone Operations)
Change
Assumed LOM Gold Price per ounceUS$$1,462$1,250- $212
Post-tax NPV@5%C$million$295$482+ $187
Post-tax Internal Rate of Return (IRR) 12%19%+ 7%
Payback PeriodYears4.43.7- 0.65
LOM Cumulative Free Cashflow including
Initial Capex (undiscounted)
C$million$704$963+ $259
Initial CapitalC$million$764$507- $257
LOM Production000oz2,7992,210- 589
Mine LifeYears1424+ 10
LOM Strip Ratio 2.31.4- 0.86
LOM Cash Cost per OunceUS$$774$595- $179
LOM AISC per OunceUS$$834$659- $175

 

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 2012 PEA was prepared by TetraTech WEI Inc, (“TT”) an internationally recognized engineering firm. The PEA was prepared under the supervision of Mr Martin Regan of TT, Independent Qualified persons (“QP”) as defined by National Instrument 43-101.  The technical report presenting the results of the PEA was filed on November 15, 2012.

 

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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