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 | $960 |
| Internal Rate of Return (IRR) | % | 16% | 20% | 23% | 29% | 31% | 34% | 37% | 40% |
| Payback of Initial Capex | Years | 4.3 | 3.8 | 3.5 | 2.9 | 2.8 | 2.6 | 2.4 | 2.2 |
| Post-tax: | |||||||||
| NPV at 5% | C$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 Capex | Years | 4.3 | 3.8 | 3.5 | 3.0 | 2.9 | 2.6 | 2.4 | 2.3 |
* base case
Phase One Scope and Operations
| Scope | |
|---|---|
| Throughput | 10,000 tonnes per day |
| Initial Capex | C$364 m/ US$273 m |
| Life of Mine | 11 years |
| Life of Mine Production | 1,145,000 ounces |
| Operations | |||
|---|---|---|---|
| Unit | Year 1 – 5 Average | Life of Mine Average | |
| Gold Grade | g/t | 1.13 | 1.00 |
| Recovery | % | 91 | 91 |
| Annual Gold Production | Koz | 116 | 104 |
| Cash Cost / oz | US$ | 481 | 511 |
| All-in-sustainable Cost / oz | US$ | 519 | 549 |
| Total Cost / oz | US$ | 776 | 807 |
Initial Capital Expenditures
| Direct Costs | Initial Capital Cost (C$ Million) |
|---|---|
| Overall Site | 6.7 |
| Open Pit Mining | 70.2 |
| Processing Plant (including Ore Handling) | 77.4 |
| Tailing Management Facility & Water Management | 46.7 |
| Environmental | 12.0 |
| On-Site Infrastructure | 24.0 |
| Off-Site Infrastructure | 17.1 |
| Sub-Total | $254.1 |
| Indirect Costs | |
| Project Indirects | 58.9 |
| Owner’s Costs | 9.3 |
| Contingencies | 41.5 |
| Sub-Total | $109.7 |
| Total Initial Capital Cost | $363.8 |
Unit Operating Cost
| Area | Unit Cost (C$) |
|---|---|
| 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.
