The Windfall project, in the Abitibi greenstone belt of Quebec, has the potential to be a “significant and highly profitable” new gold mine, in Quebec, producing an average of 306 000 oz/y at an all-in sustaining cost of $758/oz.
This is according to a feasibility study, which provides a robust base case assessment for developing the mine as an underground dual ramp-access mine with a central processing mill on site, reports project owner Osisko Mining.
“Using the grades defined in our most recent mineral resource estimate, the numbers are robust, with a C$1.2-billion after-tax net present value and 34% after-tax unlevered internal rate of return, using $1 600/oz gold,” said CEO John Burzynski.
The study yields an average aftertax free cash flow of C$257-million a year, or C$2.3-billion cumulative free cash flow.
He added that the company would complete the environmental impact assessment study in the first quarter of next year and begin the permitting process.
The company expects the announcement of project financing plans in the first half of 2023 and a production decision in early 2024. The feasibility study calculates capital expenditure of C$788-million.