Major Economic Assessment Unveiled for Wallbridge's Fenelon Gold Project
Exciting Developments in Gold Mining: Wallbridge Mining's Fenelon Project
Wallbridge Mining Company Limited (TSX:WM, OTCQB:WLBMF) is proud to present groundbreaking results from its updated Preliminary Economic Assessment (PEA) on the Fenelon Gold Project. Situated within the rich Abitibi Greenstone Belt and along the Detour-Fenelon Gold Trend, the project showcases robust metrics that underline its potential for significant economic benefit.
Highlights of the Preliminary Economic Assessment
The PEA for the Fenelon Gold Project has revealed encouraging data. Average annual gold production is projected at an impressive 107,000 ounces over a mine life of 16 years, with a remarkable recovery rate of 96%. Initially, the project is poised to yield an even higher average of 127,000 ounces during its first five years of operation.
Financial Metrics That Impress
This comprehensive assessment highlights an average annual free cash flow of around $120 million throughout the life of the mine. With an after-tax Internal Rate of Return (IRR) of 21% and an after-tax Net Present Value (NPV) of $706 million, the project's economics appear robust. This analysis assumes a conservative base case gold price of US$2,200 per ounce and a CAD to USD exchange rate of 1.35.
Capital Expenditures and Cost Evaluations
Initial capital expenditures are estimated at $579 million, supplemented by sustaining capital costs of approximately $449 million. Remarkably, the anticipated total cash costs are estimated to be $851 per ounce, which positions the project favorably in the current gold market.
Production Strategies and Mining Efficiency
The planned mining operations involve extracting 16.6 million tonnes of mineralized material at an impressive average grade of 3.34 grams per tonne. The mining strategy incorporates both underground and open-pit methods, ensuring an efficient extraction of resources.
Exploring the Mining Sites
Key zones identified include the Contact-Tabasco-Cayenne zone and the Area 51 zone, which together make up a significant portion of the projected gold output. With a mining rate of 3,000 tonnes per day, Wallbridge aims for production efficiency that aligns with expected industry standards.
Strong Economic Rationales
The financial analysis undertaken showcases a compelling narrative: at a projected gold price of US$3,000, the NPV could soar to $1.38 billion with a 34% IRR and a payback period drastically shortened to just 2.4 years. This is essential for navigating potential expansions and optimizing returns on investment as market conditions evolve.
Toward Sustainable Mining Solutions
Wallbridge's commitment extends beyond profitability; it includes responsibility toward the environment and local communities. The Company emphasizes sustainable mining practices while engaging with First Nations and communities to foster inclusive growth.
Brian Penny, CEO of Wallbridge, expressed optimism regarding Fenelon's future. He notes that the updated PEA not only reflects the project's strong economic potential but also fosters an environment ready for sustainable development.
Investment and Future Plans
With a comprehensive investment rationale, Wallbridge is well-positioned to advance the Fenelon Project toward production. Investors and stakeholders alike can look forward to further developments as new opportunities unfold within this promising venture.
Frequently Asked Questions
What is the Fenelon Gold Project?
The Fenelon Gold Project is a mining project developed by Wallbridge Mining Company, showcasing significant gold production potential in Quebec.
What are the key financial metrics from the Preliminary Economic Assessment?
The PEA reveals an IRR of 21% and an NPV of $706 million based on a US$2,200 gold price.
How much gold production does Wallbridge expect?
Average annual production is projected at 107,000 ounces over a mine life of 16 years.
What are the capital expenditures for the project?
Initial capital expenditures are estimated at $579 million, along with sustaining costs of about $449 million.
What is Wallbridge's commitment to sustainability?
Wallbridge focuses on sustainable practices and community engagement, ensuring responsible mining operations.
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