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GoGold's Los Ricos PEA pegs NPV at $295M (U.S.)
2021-01-20 07:00 ET - News Release
Mr. Brad Langille reports
GOGOLD ANNOUNCES NPV OF US$295M FOR LOS RICOS SOUTH PEA
GoGold Resources Inc. has released the results of its initial preliminary economic assessment (PEA) at its Los Ricos South project located in Jalisco state, Mexico.
Highlights of the PEA, with a base case silver price of US$21.00/oz and gold price of US$1,550/oz are as follows (all figures in US dollars unless otherwise stated):
GoGold completes PEA at its first target in Los Ricos district {໴ –} Los Ricos South;
After-Tax NPV (using a discount rate of 5%) of $295 Million with an After-Tax IRR of 46% (Base Case);
11-year mine life producing a total of 69.6 million payable silver equivalent ounces ("AgEq"), consisting of 42.9 million silver ounces, 352,000 gold ounces and 4.5 million copper pounds;
Initial capital costs of $125 million, including $16 million in contingency costs, over an expected 18 month build, and additional sustaining capital costs of $62 million over the life of mine ("LOM");
Average LOM operating cash costs of $8.65/oz AgEq, and all in sustaining costs ("AISC") of $11.35/oz AgEq
At approximate spot metal prices of $24.40 silver/oz and $1,800 gold/oz, provides an After-Tax NPV (using a discount rate of 5%) of $408 million and an IRR of 58%;
Average annual production of 8.7 million AgEq in years two through six;
Approximately 2/3 of LOM production is open pit ("OP"), and approximately 1/3 is bulk underground ("UG") mining;
22 months from project acquisition to PEA, including initial Mineral Resource on first target at Los Ricos South.
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https://www.stockwatch.com/News/Item?bid=Z-C:GGD-3019217&symbol=GGD®ion=C