The feasibility study of the Hod Maden copper/gold project, in Turkey, has yielded robust results, with an after-tax net present value (NPV) of $1.05-billion and an internal rate of return of 36%.
NYSE- and TSX-listed Sandstorm Gold, which has a 30% interest in the project, reports that Hod Maden has proven and probable reserves of 2.45-million ounces of gold and 287-million pounds of copper.
The mine will operate for 13 years and deliver an average of 195 000 gold-equivalent ounces a year, comprising 156 000 oz/y of gold and 19.6-million pounds a year of copper
The feasibility study estimates all-in sustaining costs of $334/oz on a byproduct basis and $595/oz on a co-product basis.
According to the study, upfront capital of $309-million will be required.
“The release of the Hod Maden feasibility study is a major turning point for not only the project, but for Sandstorm as well,” commented president and CEO Nolan Watson.
“When we purchased the stake in Hod Maden back in 2017, we knew that it would be a major growth catalyst for Sandstorm, and the positive results of this study spell out just how transformational it will be once in production. Along with the granting of the environmental impact assessment (EIA) that was previously announced, the feasibility study launches Hod Maden into the next stage of development.”
The operator, Lidya Madencilik Sanayi ve Ticaret has started the application process for the forestry permit after receiving the final approval of the EIA from the Ministry of Environment, Urbanisation and Climate Change of Turkey in November.
Production from Hod Maden is currently expected in the second half of 2024.