Goldboro Gold Project
Highlights of the Feasibility Study
- Total gold recovered of over 1.10 million ounces over an approximately 11-year open pit life of mine (“LOM”) with average gold production of 100,000 ounces per annum and an average diluted grade of 2.26 grams per tonne (“g/t”) gold;
- Pre-tax Net Present Value at a 5% discount rate (“NPV 5%”) of $484 million and a pre-tax Internal Rate of Return (“IRR”) of 31.2%, with a projected pre-tax payback of 2.7 years;
- After-tax NPV 5% of $328 million and an after-tax IRR of 25.5%, projected after-tax payback of 2.9 years;
- Maiden Open Pit Probable Mineral Reserves of 1,150,200 ounces of gold (15.8 million tonnes (“Mt”) at 2.26 g/t gold);
- Open pit Measured and Indicated Mineral Resources of 1,422,000 ounces (15.7 Mt at 2.82 g/t gold) and Underground Measured and Indicated Mineral resources of 1,159,000 ounces (5.9 Mt at 6.09 g/t gold);
- Open pit Inferred Mineral Resources of 66,000 (0.98 Mt at 2.11 g/t gold) and Underground Inferred Mineral Resources of 418,000 ounces (2.2 Mt at 5.89 g/t gold);
- Initial capital cost (“Capex”) of $271 million and LOM sustaining capital of $63.1 million;
- LOM Operating Cash Costs of $966 (US$773) per ounce1 and All-In Sustaining Costs (“AISC”) of $1,062 (US$849) per ounce1;
- Projected creation of approximately 345 direct full-time jobs during construction and 215 direct full-time jobs during operations, while generating in excess of $226 million in federal and provincial tax payments;
- Mill capacity of 4,000 tonnes per day (“tpd”) based on a combined gravity and leaching circuit, yielding an average gold recovery of 95.8%; and
- At a gold price of $2,200 (~US$1,760), Goldboro could generate cumulative after-tax net cash flows of approximately $684 million, an after-tax NPV 5% of over $442 million and an after-tax IRR of 31.7%.
With Strong Opportunity for Further Value Creation
- Ongoing infill drilling has the potential to reduce the strip ratio and positively impact NPV and IRR by upgrading Inferred Mineral Resources coincident with the current open pit designs based on Measured and Indicated Mineral Resources only;
- Potential for Mineral Resource expansion, particularly towards the west with further exploration of a 1.5-kilometre-long area along strike of the existing Goldboro Deposit (“Deposit”) towards the past producing gold mine at Dolliver Mountain;
- The Goldboro Deposit has been drill tested to only 500 metres and remains open at depth. A future study will consider upgrading and expanding potentially mineable underground Mineral Resources as part of the longer-term mine development plan.
