Canadian Mining Journal

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GOLD: Moss Lake PEA posits $440 million cash flow

ONTARIO – Moss Lake Gold Mines of Toronto says the preliminary economic analysis of its Moss Lake gold property 100 km west of Thunder Bay point toward a project that will have an after tax cash flow of $440 million during a 10-year mine...



ONTARIO – Moss Lake Gold Mines of Toronto says the preliminary economic analysis of its Moss Lake gold property 100 km west of Thunder Bay point toward a project that will have an after tax cash flow of $440 million during a 10-year mine life. During that time, production will average 244,000 oz per year.

The project is further estimated to have a net present value of $196 million at a 5% discount rate after taxes. The after tax internal rate of return will be 12%, and the project payback period will be two years.

Moss Lake envisions open pit mining and a 40,000-t/d processing plant with gravity and carbon in leach recovery. The company expects that there will be a four-year permitting and pre-production period with capital costs of $543 million.

The indicated resources, all of which lie within the planned open pit, total 39.8 million tonnes grading 1.1 g/t Au and containing 1.38 million oz of gold. The open pit inferred resource is 48.9 million tonnes grading 1.0 g/t Au. Underground resources are classified as inferred and total 1.46 million tonnes grading 2.9 g/t Au.

The details of the PEA are presented in the news release of July 29, 2013, posted at MossLakeGold.com.