The Feasibility Study, with a report date of January 11, 2022, was completed by Nordmin Engineering Ltd. (“Nordmin”) as Lead Mining and Geological Consultant. Ausenco Engineering Canada Inc. (“Ausenco”) acted as Metallurgical and Processing Consultant, Knight Piésold Ltd. (“Knight Piésold”) as Tailings Consultant, GHD Ltd. (“GHD”) as Site Water Management and Environmental Consultant, Lorax Environmental Services Limited (“Lorax”) as Geochemistry Consultant, and McCallum Environmental Ltd. (“McCallum”) as Consultation and Permitting Consultant.
Table 1: Summary of Key Estimated Results and Assumptions in the Feasibility Study
|
Production Data |
Values |
Units |
|
Life of Mine |
10.9 |
Years |
|
Processing Rate |
4,000 / 1.46 |
tpd / Mtpa |
|
Recovered Gold |
1.10 |
Moz |
|
Average Gold Recovery |
95.8 |
% |
|
Pre-production Tonnes Mined |
4.1 |
Mt |
|
Total Material Mined (including pre-production) |
142.6 |
Mt |
|
Total Ore Tonnes Mined |
15.8 |
Mt |
|
Overall Strip Ratio |
8.0 |
waste: ore |
|
Total Tonnes Milled |
15.8 |
Mt |
|
Average Annual Gold Production |
100 |
koz |
|
Average Mill Feed Grade |
2.26 |
g/t gold |
|
Capital Costs |
Values |
Units |
|
Initial Capital, Direct Cost Estimate |
193.9 |
C$M |
|
Initial Capital, Indirect Costs and Contingency |
77.1 |
C$M |
|
Total Initial Capital Costs |
271.0 |
C$M |
|
LOM Sustaining Capital Costs, including Indirect Costs and Contingency |
63.1 |
C$M |
|
Total Reclamation and Other Costs |
50.3 |
C$M |
|
Total LOM Capital Costs |
384.5 |
C$M |
|
Operating Costs |
Values |
Units |
|
Open Pit Mining |
4.99 |
C$/t mined |
|
Processing |
13.45 |
C$/t milled |
|
Refining and Transport |
4.23 |
C$/oz |
|
Water Management and Treatment |
1.16 |
C$/t milled |
|
Site Support Costs |
8.70 |
C$/t milled |
|
Total Operating Cost |
67.05 |
C$/t milled |
|
Average Operating Cash Cost per Ounce 1 |
966 (US$773) |
C$/oz |
|
Average All-In Sustaining Cost per Ounce 1 |
1,062 (US$849) |
C$/oz |
|
Financial Analysis |
Values |
Units |
|
Gold Price Assumption |
$1,600 |
US$/oz |
|
Exchange Rate |
1:1.25 |
US$:C$ |
|
Gold Price Assumption |
$2,000 |
C$/oz |
|
Pre-Tax Unlevered Free Cash Flow |
755 |
C$M |
|
Pre-Tax NPV 5% |
484 |
C$M |
|
Pre-Tax IRR |
31.2 |
% |
|
Pre-Tax Payback |
2.7 |
years |
|
After-Tax Unlevered Free Cash Flow |
529 |
C$M |
|
After-Tax NPV 5% |
328 |
C$M |
|
After-Tax IRR |
25.5 |
% |
|
After-Tax Payback |
2.9 |
years |
|
LOM Direct Income and Provincial Mining Taxes |
226 |
C$M |
Notes: