NOVA SCOTIA – Atlantic Gold of Sydney, Australia, has updated the definitive feasibility study for its Touquoy gold project 120 km northeast of Halifax. With updated cost and an improved gold price, the company says the mine could be in production 21 months after the engineering contract is awarded.
The pre-production cost of the Touquoy project is $140 million – $5 million for the mine, $59 million for the gravity-CIL plant, $10 million for the tailings management area, and $22 million for site infrastructure, plus engineering, working capital, the reclamation bond and contingencies. The annual gold production would average 84,000 oz.
Atlantic Gold also says the cash operating costs with Canadian and US dollars at parity would be $597/oz, including royalty payments of $37/oz. The pre-tax net present value (8%) will be $206 million and the internal rate of return 52.5%. The project would pay for itself in 18 months.
The Touquoy gold project represents the first stage of a 10-year production plan of 900,000 oz for the combined Touquoy and Cochrane Hill gold projects. The combined plan involves the relocation of the Touquoy processing plant 80 km to the east to Cochrane Hill upon completion of the Touquoy operation.
National Instrument 43-101 reports for both Touquoy and Cochrane Hill are posted at AtlanticGold.com.au.