Getchell Gold posts PEA for Nevada Fondaway Canyon project with pre-tax NPV8% of US$1 billion
GTCH•Preliminary economic assessment outlines 12,000 tpd mine
Getchell Gold released a preliminary economic assessment for its 100%-owned Fondaway Canyon gold project in Nevada, outlining a 12,000 tpd open-pit mine.
- Base case at a US$3,200/oz gold price: pre-tax NPV8% of US$1 billion, pre-tax IRR of 58.8%; after-tax NPV8% of US$905 million, after-tax IRR of 53.1%.
- Initial capex estimated at US$265 million, including a 20% contingency; pre-tax payback estimated at 1.5 years.
- Mine plan targets 1.52 million oz recovered over a 10-year life; average annual production of 150,000 oz; average mined grade of 1.38 g/t Au; estimated recovery to sales of 80%.
- Operating costs estimated at US$1,373/oz; cash costs estimated at US$1,740/oz; concentrate sale contemplated for third-party oxidation and refining.
