ONTARIO – Gowest Gold of Toronto says the pre-feasibility study for the Bradshaw deposit, part of the larger North Timmins gold project 50 km northeast of Timmins, is positive. The study, by Stantec Mining, focuses on mining the upper 500 vertical metres of mineralization, although drilling has traced the mineralization to a depth of 1,350 metres.
The PFS was prepared with a $1,200/oz price for gold (all prices in US dollars) and an 80-cent Canadian dollar. The project has a pre-tax net present value (5% discount) of $39.8 million and internal rate of return of 32%. After tax, those numbers drop to $29.2 million and 27%, respectively. The pre-tax payback period is 3.5 years.
The cost of development will be $21.5 million, followed by sustaining capital of $21.4 million. Over the seven-year life of the mine the all-in sustaining cost will be $891/oz of gold. Gowest said the Bradshaw deposit could produce over 305,000 oz of gold.
An underground mine and toll milling is planned. Please visit GowestGold.com.