YUKON – Kaminak Gold Corp. of Vancouver is looking at a positive preliminary economic assessment for its Coffee gold project 130 km south of Dawson City. The study outlines an open pit with an 11-year life that would have a pre-tax net present value of $522 million at 5% and an internal rate of return of 32.8%.
The Coffee project would produce 167,000 oz of gold per year an all-in sustaining cost of US$688/oz. The initial $305 million capital cost would be repaid in 1.8 years (pre-tax) or 2.0 years (post-tax).
Kaminak CEO Eira Thomas said, “The recently completed Coffee PEA has delivered a high value, high margin, low risk gold project in one of the world’s safest, pro-mining jurisdictions, Yukon, Canada, and marks a significant milestone for our company. At a US$1250 gold price, Coffee will generate more than $2 billion in gross revenue, deliver total life of mine, pre-tax, free cash of $800 million and payback capital in under two years. … All of the deposits in the current resource remain open along strike and to depth.”
The Coffee project covers four deposits – Kona, Double Double, Latte and Supremo. Each one contains distinct oxide, upper transition, lower transition and sulphide mineralization layers. Together they total 14.44 million indicated tonnes averaging 1.56 g/t Au with 719,000 contained oz. The inferred resource totals 78.59 million tonnes grading 1.36 g/t Au with 3.43 million contained oz.
Enjoy Kaminak’s April 2014 corporate presentation at Kaminak.com.