Troilus unveils PEA for $333m Quebec gold mine
Toronto-listed Troilus Gold has announced the results of a preliminary economic assessment (PEA) for its namesake project in Quebec, outlining plans for a $333-million mine that has the potential to become a large North American gold producer.
The PEA supports a project with production spanning 22 years, robust potential economics at discounted and current gold prices, low capital expenditure, low capital intensity and a rapid payback, says Troilus CEO Justin Reid.
The PEA supports a combined openpit/underground mining for a 35 000 t/d operation over a 22-year mine life, producing an average of 220 000 oz/y for the first five years and 246 000 oz/y for the first 14 years.
The study calculated that Troilus will produce gold at an average cash operating cost of $919/oz and an all-in sustaining cost of $1 051/oz.
The project has an internal rate of return (IRR) of 32.2% and a net present value (NPV) at a 5% discount of $576-million at a gold price of $1 475/oz, increasing to 38.3% and $1.16-billion at current spot gold prices of $1 950/oz.
The project has a four year after-tax payback period at the base case of $1 475/oz of gold.
“We believe the Troilus property has the potential to extend the mine life beyond the projected 22 years presented in the PEA and provide the opportunity to expand the scale in the future by continuing to seek increases to the mineral resource estimate with ongoing exploration and drilling,” comments Reid.
Troilius will now start prefeasibility work while continuing to explore the geological potential of the 107 000 ha property.
“Our goal is to make this a cornerstone mining Project within both the Quebec and Canadian Gold landscapes.”
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