BRITISH COLUMBIA — International Wayside Gold Mines says that according to the pre-feasibility study, its small Bonanza Ledge gold mine needs an investment of only US$3.6 million to become a 200-t/d producer. Ore would be custom milled to produce 20,000 oz of gold each year for four years.
Using a base case of US$750/oz gold, the project would show a pre-tax internal rate of return (IRR) of 44% and a pre-tax cash flow of US$6.7 million. The initial capital investment would be recouped in 2.5 years. At a high gold price of US$1,050, the IRR would jump to 140%.
Wayside also provided updated resource numbers. As of Aug. 31, 2009, the proven reserve was 130,726 tonnes at 10.23 g/t Au, and the probable reserve was 166,810 tonnes at 8.11 g/t Au. Total contained gold is estimated to be 86,400 oz.
More information from the pre-feasibility study, as well as additional resource numbers, are available at www.Wayside-Gold.com in the news release dated Sept. 10, 2009.