Moneta Porcupine announces PEA for South West deposit
TSX-listed Moneta Porcupine has announced the results from a preliminary economic assessment (PEA) on the South West deposit, at its Golden Highway project in Timmins, Ontario.
The PEA is based on a standalone, owner-operated mine and mill with an 11-year mine life, producing 75 700 oz/y at a cash cost of $590/oz.
Initial capital costs have been estimated at C$144-million and sustaining capital costs at C$136-million.
Using a $1 500/oz gold price, the study calculated an after-tax net present value (NPV) of C$236-million, using a 5% discount rate, and an internal rate of return (IRR) of 30% with a capital payback of 3.4 years.
At a gold price of $1 900/oz, the NPV nearly doubles to C$423-million and a 47% IRR.
“The excellent economics are afforded by the project’s location in Canada’s most prolific gold mining camp, Timmins, Ontario, with extensive existing infrastructure and experienced and available services and workforce,” said CEO Gary O’Connor.
In addition to the base development plan, Montena Porcupine said it also had a highly attractive development option which involved minor initial capital expenditure, shorter development time line and negated the need to permit and build a processing plant and associated infrastructure, assuming toll milling of the ore.
The toll milling option has an NPV of $197-million and IRR of 44, with an initial capital cost of C$65-million.
In addition to the South West deposit, the company has five additional gold deposits on the Golden Highway project and has discovered three new mineralised areas – Westaway, Halfway and South Basin in 2020. A maiden resource for Westaway is planned for this year.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation