Positive Preliminary Economic Assessment from 1911 Gold Corporation
1911 Gold Corporation (TSXV: AUMB) (OTCQX: AUMBF) announces encouraging outcomes from the independent Preliminary Economic Assessment (PEA) for their True North Gold Project. The assessment outlines a sustainable mining operation leveraging the existing infrastructure, which includes shafts, underground workings, and processing facilities.
PEA Highlights: Strong Economic Feasibility
The PEA underscores the project’s economic viability with an after-tax net present value (NPV) of $391 million, alongside an impressive internal rate of return (IRR) of 105%. The report indicates notable gains at longer gold prices where the NPV reaches $998 million with nearly immediate returns on investment. This forms a solid basis for the planned production restart.
Production and Financial Metrics
The planned production aims for a steady output of 58,114 ounces annually over a mine life of 11 years. With cash costs pegged at approximately $1,390 per ounce, the financial landscape looks robust. Management forecasts the generation of significant cash flow, totaling about $545 million without discounting after-tax returns.
A Comprehensive Mining Strategy
The PEA lays out a meticulous plan, utilizing established infrastructure to minimize capital expenditure. Initial capital costs are estimated at $59.2 million, with additional ramp-up costs in the first two years totaling $46.7 million. Moreover, expected operating costs are competitively structured, minimizing the long-term operational burden.
Mining Methodology and Infrastructure
Validating the operational strategy, the project will commence with underground mining through four access points: Main "A" Shaft, Hinge decline, and others that are strategically positioned to optimize production. The underground operation will extract more than 4 million tonnes of ore at an average grade of 4.32 g/t, showcasing the efficiency of resource utilization and maximizing yield.
Processing and Recovery Rate
The True North processing facility has a rich history of producing gold at high recovery rates, with enhancements planned to boost processing capabilities. There is an existing capacity to handle increased throughput, ensuring the operations can react to fluctuations in production demands.
Environmental and Community Impact
Recognizing the importance of corporate social responsibility, 1911 Gold emphasizes proactive environmental stewardship and community engagement, maintaining a consistent dialogue with stakeholders to foster supportive relationships while promoting local economic development.
Future Exploration and Resource Expansion
The PEA reveals exciting prospects for resource expansion, with opportunities for further drilling in promising regions around existing infrastructure. Notably, adjacent deposits such as San Antonio Southeast and West are not included in this assessment, showcasing the potential for significant growth.
Timeline for Production and Future Plans
The mine is expected to reach a steady-state production phase by 2027, with various initiatives lining up to ensure operational readiness. An immediate focus will be on confirming existing resources and conducting additional drilling to unlock further potential.
Frequently Asked Questions
What is the significance of the PEA results for 1911 Gold?
The PEA highlights the economic viability of the True North Gold Project, indicating a low capital intensity and strong returns which set a solid foundation for future operations.
What are the expected production levels from True North?
The project anticipates steady-state production of approximately 58,114 ounces of gold annually over an 11-year mine life.
How does 1911 Gold plan to manage environmental concerns?
The company emphasizes a commitment to environmental management and community engagement, ensuring sustainable practices in mining operations.
What are the next steps for the True North Gold Project?
The immediate plan involves ramping up to full production by 2027 while exploring additional resources to maximize output.
How can I learn more about the project updates?
Stay tuned for updates by visiting the official 1911 Gold Corporation website or subscribing to their news releases for the latest information on the True North project.
