Name of the Project
Mirado gold project.

Location
The project is located to the south-east of Kirkland Lake, in Ontario, Canada, within the prolific gold-producing Abitibi greenstone belt.

Client
Orefinders Resources.

Project Description
A preliminary economic assessment (PEA) has demonstrated positive economics for the extraction of the mineral resources using successive openpit phases.

The PEA considers production from a specific area only, which encompasses about 5% of the Mirado project. The mineral resources are located in the South Zone’s openpit and are near-surface mineralisations that can be economically mined within a relatively short timeframe and without using on-site processing or a tailings facility. Current mineral resources are estimated at 559 000 t at an average grade of 2.61 g/t gold for 46 900 oz of indicated mineral resource and an additional inferred mineral resource of 382 000 t at an average grade of 2.66 g/t gold for 32 700 oz, based on a cutoff grade of 1 g/t gold.

The PEA schedule proposes mining 996 000 t of mineralised material in the openpit at an average grade of 2.33 g/t. Mining recovery has been estimated at 97% and dilution at 15%.

Proposed mining will begin with prestripping and then expanding Mirado’s existing openpit. The PEA proposes a conventional truck-and-shovel operation with ramp access.

Since the life-of-mine being considered is relatively short, the mining operation will be conducted on a contract basis.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax undiscounted net present value (NPV), at a 5% discount rate, of $30.8-million and an after-tax NPV of $20.5-million, and an after-tax internal rate of return of 158%. Payback has been estimated at seven months from the start of mill feed production of the openpit.

Value
The initial preproduction expenditure to achieve first production from the openpit is estimated at $2.4-million.

Duration
Not stated.

Latest Developments
None stated.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Orefinders, tel +416 644 1567 or email info@orefinders.ca.