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.
