Gold Canyon Resources Reports PEA for Springpole Gold Project Generates Pre-tax 25% IRR

By Staff,

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Gold Canyon Resources Inc. (GCU.V)this morning reported a positive Preliminary Economic Assessment (PEA) prepared by SRK Consulting (Canada) Inc. for its 100% controlled Springpole Gold Project in northwest Ontario, Canada.

The PEA supports a conventional open-pit mining and milling operation. At a 5% discount rate and a US$1,300/oz gold price, the project's pre-tax net present value ( NPV ) is estimated at US$579 million with a pre-tax internal rate of return ( IRR ) of 25%, and a non-discounted payback of 1.7 years, other highlights include:

- Initial capital cost of US$438 million

- Payback period of 1.7 years (non-discounted)

- Pre-tax NPV of US$579 million (US$1.03 billion at a US$1,600/oz gold price)

- IRR (pre-tax) of 25.4% (36.9% at a US$1,600/oz gold price)

- During full production, estimated 217,000 ozs and 1,200,000 ozs average annual gold and silver production, respectively

- Estimated cash cost of US$636/equivalent ounce gold (eq.oz Au) and all-in cost of US$860/eq.oz Au

- Strip ratio of 1.7

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: IRR , NPV

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