QUEBEC – Abcourt Mines of Mont-St-Hilaire, QC, reports that the NI 43-101 preliminary economic assessment report on the Elder gold mine project 10 km northwest of Rouyn-Noranda indicates a total cash flow of $138 million over a 10.4-year initial period of mine life, a before tax net present value of $81.8 million at a discount rate of 8%, a before tax internal rate of return of 140.5% and a payback period of 1.1 years.
Abcourt notes that the PEA was based solely on resource estimates for the Elder property and not any of the resources at the adjacent Tagami property.
The Elder mine is serviced to a depth of 792 metres by two shafts and 14 levels. An annual mining rate of 150,000 tonnes with a grade of 5.48 g/t Au is proposed. Assuming a toll mill could achieve a gold recovery rate of 94%, the mine would produce 246,500 oz over its lifetime. Pre-production capital expenditures (excluding spares) would be $2.12 million.
A longitudinal section of the Elder mine development is posted at Abcourt.com.
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