TSX-V- and ASX-listed Lion One Metals has published an updated preliminary economic assessment (PEA) for the Tuvatu gold project, on the island of Viti Levu, in Fiji.
The updated PEA states the project’s gold production capacity at an average rate of 78 000 oz/y, at 8.6 g/t gold over a five-year mine life for a total 331 300 oz.
Assuming a base case gold price of $1 400/oz, the project now has a pre-tax net present value of $155-million and a pre-tax internal rate of return of 60.3%, with a 1.5 year payback period.
The all-in costs after tax will be $914/oz.
The initial capital expenditure required for the Tuvatu project is $67-million, which includes establishing an underground mine, and processing and tailings storage facilities.
The company says that the PEA is based on a mineral resource estimate from 2018 and does not include any new drilling completed by the company in its 2019 and 2020 drill programmes.
“The PEA for Tuvatu demonstrates robust economic potential for a low-cost, high-grade gold operation with low upfront capital costs, enabling rapid payback of capital even at a gold price of $1 400/oz,” notes Lion One chairperson and CEO Walter Berukoff.
He adds that the company is encouraged about Tuvatu’s potential for a near-term development and production opportunity, with further exploration and expansion potential as it continues its current drill programmes to extend the known mineralisation of Tuvatu and the surrounding Navilawa Caldera.