True Gold Mining (TSXV: TGM) is on track to pour the first gold at its Karma project in Burkina Faso in late 2015, with the mine plan envisioning five open pits that will be developed in sequence to feed a heap leach operation over the course of an 8.5 year mine life.
But now that mine life looks like it can be extended by another 2.5 years according to a preliminary economic assessment of a sixth zone at the Karma project called North Kao, whose leachable ounces were not included in a 2013 feasibility study.
True Gold has advanced North Kao from a blind discovery to a PEA stage asset in just over a year, and the study released today shows that the deposit will add an additional US$118.6 million in after-tax free cash flow to Karma and about US$70 million to the project’s after-tax net present value.
North Kao is expected to produce an average of 118,000 oz of gold a year for a 2.5 year period starting at the end of Karma’s mine life (years nine to 11), with direct cash operating costs of about US$577 per oz and all-in sustaining cash costs of US$652 per oz.
Read the complete article at NorthernMiner.com/news/true-gold