NEWFOUNDLAND – Benton Resources, headquartered in Thunder Bay, ON, has released a positive preliminary economic assessment for the Cape Ray gold project 20 km northeast of Port aux Basque. The project has a pre-tax net present value (7% discount) of $48.4 million and a pre-tax internal rate of return of 29%. Post tax the NPV is $32.6 million and the IRR 24%.
The preproduction capital requirement during two years of construction will be $47.3 million with a contingency of $4.7 million. The project will also need sustaining capital of $33.7 million over a six-year life of the mine. Benton expects to be in a positive cash flow position in year three.
The Cape Ray project with a 850-t/d mill would ultimately produce 250,000 oz of gold and 260,000 oz of silver. Approximately 1.7 million tonnes of ore grading 4.6 g/t Au and 4.8 g/t Ag will be mined.
Benton used a gold price of US$1,200 per oz for the PEA.
View the latest corporate presentation at www.BentonResources.ca.