Maud Creek PEA: 116% IRR, $32M capex, 52K ounces/yr for 9.5 years at $632 cash cost.
PEA for the 100% owned Maud Creek Gold Project located in the Northern Territory, approximately 144 kilometres from the Union Reefs processing facility. Utilization of the Union Reefs Mill provides an opportunity to leverage existing infrastructure in the future, which has a total capacity of 2.5 Mt, of which 1.2 Mt is not being utilized (the PEA is from when Cosmo was still running) and can treat additional ore. The Maud Creek deposit is also located close to existing rail network, and is situated 20 km from the regional centre of Katherine in the Northern Territory. The PEA was prepared by SRK Consulting (Australasia) Pty Ltd (“SRK”) using base case parameters of a A$1,550 per ouncegold price (US$1,200) and an AUD/US exchange rate of 0.77.
Highlights:
Pre-Tax NPV (5%) A$201 million (US$155 million)
Pre-Tax IRR116%
After-Tax NPV (5%) A$137 million (US$105 million)
After Tax IRR 80%
Pay Back Period 1.25 years
Pre-production Capital Cost A$42 million (~US$32 million)
Mine Life 9.5 years
LOM Gold Grade (Diluted Gold Grade) 4.2 g/t Au
LOM Recovered Gold 496,000 ounces
Average Annual Production 52,000 ounces
LOM Cash Operating Cost A$822 per ounce (US$632 per ounce)
The NI 43-101 technical report for Maud Creek entitled “Technical Report, Preliminary Economic Assessment of the Maud Creek Gold Project, Northern Territory, Australia” and dated May 16, 2016 (the “Technical Report”) is available under the Company’s profile on SEDAR at www.sedar.com
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