ONTARIO – APOLLO GOLD of Denver has released the bankable feasibility study for its Black Fox gold project near Timmins. The study set a net present value (NPV) of $302 million (all figures in U.S. dollars) using a gold price of $750/oz, and estimated an internal rate of return (IRR) of over 62%, with capital payback in two years.
Black Fox would be a combined open pit and underground mining operation, processing ore at the Stock mill that Apollo is buying from St Andrew Goldfields (see CMJ Net News for March 30, 2008). Pre-production capital costs are $86.9 million including $13.4 million for open pit equipment, $4.0 million for pre-stripping, $7.8 million for underground equipment, $20.0 million to purchase the mill, $23.0 million for infrastructure, and $8.7 million for other expenses. The project will require an addition sustaining capital commitment of $69.2 million.
Production would begin in 2009 and average 150,000 oz of gold per year over the life of the mine. Mining costs are estimated at $41.15/tonne and milling costs at $31.17/tonne. Another $3.08/tonne would be assigned for general and administrative expenses. Total cash costs would be US$387/oz of gold.
Additional details of the Black Fox development are available at www.ApolloGold.com.