Name of the Project
Peak Gold project.

Location
Tok, Alaska, in the US.

Client
Peak Gold, a joint venture between Royal Alaska and CORE Alaska.

Project Description
A preliminary economic assessment (PEA) on the project has concluded that the project presents a robust openpit mining operation, with attractive economics at base case gold and silver prices.

The project has total mineral and indicated resources of 9.2-million tonnes grading 4.08 g/t gold, 14.19 g/t silver and
0.153% copper. Inferred resources are estimated 1.34-million tonnes grading 2.69 g/t gold, 16.06 g/t silver and 0.151% copper.

The PEA envisages a conventional truck-and-shovel openpit mining operation covering the North, Main and West Peak deposits, feeding a 3 500 t/d processing plant with two-stage crushing, grinding and a carbon-in-leach recovery circuit, with production of gold-silver doré bullion on site.

The assessment reports an average mining rate of 15 000 t/d of total material mined, with a maximum of 22 000 t/d occurring in years 3 to 6.

The project has a mine life of eight years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $393-million and an internal rate of return of 37%, with a payback for initial development capital of 1.5 years.

Value
The project has an initial capital cost of $293.8-million.

Duration
The project a 24-month preproduction period.

Latest Developments
Several opportunities have been identified that could enhance the project, including:

the expansion of the mine through delineation or development of additional mineral resources, pit slope steepening to improve the assumed waste-to-mill feed strip ratio, the optimisation of the assumed mine plan and development schedule, and the potential recovery of copper.

Key Contracts and Suppliers
JDS Energy and Mining (PEA).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Royal Gold, tel +1 303573 1660 or fax +1303 595 9385.