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

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

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

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