CEE, WM, IAU, ODV, NRN
African gold miner Centamin aka CEE remains firmly focused on its Sukari gold mine in Egypt, but at the same time they have been advancing the Doropo gold project in Côte d'Ivoire, and today we get to see the results of a a generally positive PFS for Doropo.
THE PFBS envisages a 10 year mine life, based only on the Probable Reserves, producing 173k oz Au per year at a cash cost of $839/oz, with higher and lower cost annual production in the first five years. The capex is reasonable at $349M, and should be able to be covered by cash on hand and cash flow from Sukari. I do not like the 5% discount rate they used -- I prefer 8% -- but that is offset by the use of $1600 as the PoG. In any case, the post-tax IRR is 26%, which is okay but which will also be improved as they continue to study the economics with a full FBS, due in the first half of 2024, after which they will submit a formal mining license application.
Côte d'Ivoire in general, and the area where Doropo is situated in particular, is mining-friendly, so I do not foresee any problems with permitting. It is estimated that it will take 36 months from investment decision to production, which takes us to 2027.
Message 34334372
In response to this announcement, BMO released a new analyst report on CEE which called the results broadly in line, though noting the delay in projected first production, they reduced their target price to $C2.01 while maintaining a Market Perform rating.
Quebec gold developer Wallbridge Mining aka WM released a PEA on its flagship Fenelon gold project. It envisages the mine producing 212k oz Au per year for 12.3 years at a cash cost of $749/oz. The capex is reasonable at $645M, but the after-tax IRR is not great at only 18%. Fortunately there are ample opportunities to improve this, as WM continues to drill up more ounces both in the main Fenelon deposits and satellite deposits, even as they explore for new deposits in the area. I will certain be interested in what happens to the numbers if they incorporate the rapidly growing nearby Martinere project.
Overall, this PEA is a decent start, but WM has their work cut out for them to improve the numbers.
Message 34334401
I'd been wondering why we hadn't received any news late of late Nevada gold developer i-80 Gold aka IAU regarding what has become their flagship asset, Ruby Hill, but today we find out why. They have been waiting for new permits to drill the largely unexplored 3 km corridor between the Hilltop deposit they have been drilling up and the newly acquired land to the south recently acquired when they bought out Paycore. They'll be looking for new instances of high grade CRD and skarn mineralization containing Au, Ag, Zn, and Pb mineralization.
I am definitely looking forward to what they find!
Message 34334412
Osisko Development aka ODV released the results of underground sampling at the Trixie mine on its Tintic project in Utah. The mine is currently producing small amounts of ore, but ODV is planning to ramp up production once they have completed exploration and developed a new mine plan.
Some of the assays returned impressive if narrow results, e.g. 58.43 g/t Au& 551.10 g/t Ag over 0.30m and 47.69 g/t Au and 214.33 g/t Ag over 0.46m, but keep in mind these are samples chosen specifically to produce high assays, not random samples. Meanwhile, sampling and drilling continue preparatory to producing a Resource Report.
Message 34334435
Northern Shield Resources aka NRN released an update on their Root & Cellar Au/Cu/Te prospect in Newfoundland. They believe they have found a 'sub-crop' where mineralization resembles that of three large mineralized boulders found in the area.
This will be followed up by trenching and drilling, but since NRN seems to specialize in finding promising mineralization which ends up amounting to nothing, I am not holding my breath...
Message 34334451 |
