Project

Phase One Economics

Positive Economics Indicated in a PEA for Phase One as a standalone operation

 

Project Economics at
Select Gold Price (US$)
Units$1,100$1,200$1,275*$1,450$1,500$1,600$1,700$1,800
Pre-tax:         
    NPV at 5%C$mm$232$336$414$596$648$752$856$960
    Internal Rate of Return (IRR)%16%20%23%29%31%34%37%40%
    Payback of Initial CapexYears4.33.83.5 2.92.82.62.42.2
Post-tax:          
    NPV at 5%C$mm$201$274$325$443$476$543$609$676
    Internal Rate of Return (IRR)%15%18%21%26%27%30%32%35%
    Payback of Initial CapexYears4.33.83.5 3.02.92.62.42.3

* base case

Phase One Scope and Operations

Scope
Throughput10,000 tonnes per day
Initial CapexC$364 m/ US$273 m
Life of Mine11 years
Life of Mine Production1,145,000 ounces

 

 Operations  
 UnitYear 1 – 5
Average
Life of Mine
Average
Gold Gradeg/t1.131.00
Recovery%9191
Annual Gold ProductionKoz116104
Cash Cost / ozUS$481511
All-in-sustainable Cost / ozUS$519549
Total Cost / ozUS$776807

Initial Capital Expenditures

Direct CostsInitial Capital Cost
(C$ Million)
    Overall Site6.7
    Open Pit Mining70.2
    Processing Plant (including Ore Handling)77.4
    Tailing Management Facility & Water Management46.7
    Environmental12.0
    On-Site Infrastructure24.0
    Off-Site Infrastructure17.1
Sub-Total$254.1
Indirect Costs 
   Project Indirects58.9
   Owner’s Costs9.3
   Contingencies41.5
Sub-Total$109.7
Total Initial Capital Cost$363.8

Unit Operating Cost

AreaUnit Cost (C$)
Mining ($/t mined)$2.48
Mining ($/t milled)$10.73
Processing ($/t milled)$6.14
Tailings ($/t milled)$0.16
G&A ($/t milled)$2.06
Total ($/t milled)$19.10

Cautionary Note 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 and do not have demonstrated economic viability.  There is no certainty that the PEA will be realized.

The PEA referred herein 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.

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