Cartier delivers PEA for Chimo with NPV of $388M and 20.8% IRR

Cartier Resources (TSXV: ECR) shared the positive preliminary economic assessment (PEA) for its Chimo gold mine project 45 km east of Val […]
Site of the former Chimo gold mine, which operated briefly in the 1960s and again in the 1980s. Cartier Resources photo

Cartier Resources (TSXV: ECR) shared the positive preliminary economic assessment (PEA) for its Chimo gold mine project 45 km east of Val d’Or, Que. The project has a post-tax net present value with a 5% discount of $388 million and an internal rate of return of 20.8%. A long-term gold price of US$1,750/oz. was used. 

With a capex of $341 million, the project has a mine life of 9.7 years and a payback period of 2.9 years. All-in sustaining costs are expected to be US$755 per ounce. 

Chimo is planned as a 4,500-t/d underground mine with average annual production of 116,900 oz. Conventional longitudinal and transverse longhole stoping is planned. 

The processing plant will have a capacity of 3,000 t/d and a recovery rate of 93.1%. Ore sorting will be practiced before milling to reduce mill construction costs, material handling, and the environmental footprint of the tailings management facility, thus increasing the social acceptability of the project.  

Cartier says the PEA demonstrates economic viability as well as several optimization opportunities. Two drills are turning at the site, and the results point toward increasing the resource. 

Resources in the North, Centra and South corridors are 7.1 million indicated tonnes grading 3.14 g/t gold and containing 720,000 oz. The inferred resource is 18.5 million tonnes grading 2.75 g/t and containing over 1.6 million oz. of gold. 

More details about the Chimo PEA are posted on www.RessourcesCartier.com

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