MANITOBA — Rolling Rock Resources of Vancouver says its Monument Bay gold property 340 km east-southeast of Thompson would cost $140 million to develop, according to the preliminary economic assessment (PEA) of the project.
The investment would create an underground, 1,000-t/d mine with an 11-year life during which time 708,300 oz of gold would be recovered. The matching mill will probably have a gravity circuit followed by either direct cyanide leaching or flotation followed by leaching. Using a 5.00-g/t cutoff, the inferred resource is 2.3 million tonnes grading 9.85 g/t Au.
The viability of the project will depend on the long-term price of gold. Rolling rock examined an economic base case using a US$750/oz gold price that gives an after tax internal rate of return (IRR) of 8.14% and an undiscounted net present value (NPV) of $45 million, $7.4 million discounted at 5%. With a gold price of US$950/oz, the undiscounted NPV is estimated as $167 million with an after tax IRR of 22.48% and an NPV of $96 million with a 5% discount rate.
Additional information about the Monument Bay project is available at www.RollingRockResources.com.