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GOLD-COPPER: Northern Freegold studies PEA with $615-M NPV and 23% IRR

YUKON – Vancouver's Northern Freegold Resources is examining the preliminary economic assessment for the Nucleus and Revenue deposits at the Freegold Mountain gold-copper project 70  km northwest of Carmacks. The report, prepared by...



YUKON – Vancouver’s Northern Freegold Resources is examining the preliminary economic assessment for the Nucleus and Revenue deposits at the Freegold Mountain gold-copper project 70  km northwest of Carmacks. The report, prepared by GeoVector Management, suggests a pre-tax net present value of $614.8 million and an internal rate of return of 23.4% at a 5% discount.

The PEA was done using a three year trailing averages prices of US$1,455/oz gold and $3.65/lb copper. At recent prevailing spot commodity prices the pre-tax NPV (5%) and IRR increase to $779.6 million and 29.7% respectively.

Northern Freegold sees an average life of mine annual production of 150,000 oz of gold, 17.3 million lb of copper, 4.2 million lb of molybdenum, and 355,000 oz silver. However, average annual gold production would be above 200,000 oz in each of the first five  years of operation. Over the life of the project, cash costs per ounce of gold (net of by-products) will be $399.

Freegold Mountain is to be an 11-year open pit and 30,000 t/d mill. Pre-production capital will be $499.7 million, followed by $78.6 million in year five for mill expansion. The original investment would be paid back in 4.2 years.

In pit resources include 52.5 million indicated tonnes grading 0.607 g/t Au and 0.051% Cu. There are also 2.7 million inferred tonnes grading 0.434 g/t Au and 0.011% Cu.

More information is available at NorthernFreegold.com.