Project

Pre-Feasibility Study Economics

Project Economics for Mining of Reserves as a Standalone Operation

 

  Gold Price (USD)
  Units $1,200 $1,400 $1,600* $1,800 $2,000 $2,200 $2,400
Pre-Tax Economics                
  NPV(5%) $M $125 $486 $848 $1,209 $1,570 $1,931 $2,293
  IRR % 9% 18% 25% 31% 36% 42% 47%
  Payback Yrs 5.4 4.0 3.2 2.7 2.4 2.1 1.9
  Cumulative Free Cashflow from Operations $M $1,040 $1,583 $2,127 $2,670 $3,214 $3,758 $4,301
Post-tax Economics                
  NPV(5%) $M $129 $415 $655 $888 $1,119 $1,350 $1,580
  IRR % 9% 16% 22% 27% 31% 36% 39%
  Payback Yrs 5.5 4.0 3.3 2.8 2.5 2.2 2.0
  Cumulative Free Cashflow from Operations $M $1,041 $1,454 $1,797 $2,140 $2,484 $2,828 $3,173

*PFS Base Case

Initial Capital Expenditures

Direct Costs

C$M US$M
Overall Site $26 $19
Open Pit Mining $73 $56
Ore Handling $34 $26
Process $125 $95
Tailings and Water Management $40 $30
Environmental Monitoring $2 $2
On-site Infrastructures $42 $32
Off-site Infrastructures $64 $49
Water treatment Plant $10 $7
Total Direct Costs $416 $316
Project Indirects $102 $78
Owner's Costs $14 $10
Contingencies $75 $57
Total $607 $461

 

Unit Cost of Production

  Unit CAD USD
Mining $/t mined $2.22 $1.69
Mining $/t milled $10.80 $8.21
Processing $/t milled $6.58 $5.00
G&A $/t milled $1.36 $1.04
TSF $/t milled $0.17 $0.13
Water treatment $/t milled $0.47 $0.36
Total $/t milled $19.38 $14.73

 

Select Operational and Cost Metrics 

  Unit Yrs 1-6
Avg.
LOM
Avg.
 
Gold Grade g/t 0.88 0.76  
Annual Gold Production Koz 183 150 (peak production 211Koz)
Annual Silver Production Koz 68 63  
Cash Cost /oz US$ $602 $696  
All-in-sustainable Cost/oz US$ $707 $801  
Total Cost/ oz US$ $974 $1,068  

 

Cautionary Note Regarding Pre-Feasibility Study

The PFS 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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