TSX-listed Ascot Resources has revised the initial capital estimate for the Premier gold project, in northern British Columbia, adding 20% to its estimated expenditure to bring the past-producing mine back into operation.
Ascot in April last year announced a C$147-million capital estimate for the mine development, project construction and refurbishment of the project site. Since then, the company has progressed the basic and preconstruction engineering studies and has received proposals for construction and equipment from third-party vendors.
These proposals, CEO Derek White says, reflect more up-to-date studies and current market conditions for construction materials, shipping and indirect costs related to health and safety protocols.
The revised estimate for the initial capital increased by 20% to C$176-million.
“After these latest updates the project still remains a low capital cost project,” White stresses.
The 2020 April feasibility study highlighted a C$341-million after-tax net present value (NPV) and an after-tax internal rate of return (IRR) of 51% at $1 400/oz of gold, and an estimated C$546-million after-tax NPV and an after-tax IRR of 73% at current gold prices, at $1 740/oz.
The Premier project will produce about 1.1-million ounces of gold and three-million ounces of silver over eight years.