GOLD: TMAC calls Hope Bay PFS ‘robust’

NUNAVUT – TMAC Resources of Toronto is calling the recently completed pre-feasibility study on the Hope Bay gold project "robust". The company says the study proposes sequential development and underground mining of three known deposits...

NUNAVUT – TMAC Resources of Toronto is calling the recently completed pre-feasibility study on the Hope Bay gold project "robust". The company says the study proposes sequential development and underground mining of three known deposits – Doris, Madrid and Boston.

The property lies 65 km east of Bathurst Inlet, in the Kitikmeot region of Nunavut.

Using a gold price of US$1,250 per oz and an Canadian:US exchange rate of 1.18, the PFS outlines a mine with a 20-year life and a 2,000-t/d mill. Annual gold production over the life of the project will be 160,000 oz, after averaging 185,000 oz/year in the first five years of production.

The Hope Bay project will require pre-production capital expenses of C$206 million plus sustaining capital of C$436 million. Gross revenue is estimated at C$ 4.7 billion and total operating cash flow at C$2.2 billion. TMAC estimates the pre-tax net present value at a 5% discount will be C$848 million and the pre-tax internal rate of return will reach 44%. The post-tax payback period will be less than two years. Total all-in costs per oz of gold produced should be US$839.

Measured and indicated resources total 15.19 million tonnes grading 9.2 g/t Au and containing 4.51 million oz of gold. The inferred resource is another 5.98 million tonnes at 7.4 g/t Au and containing 1.43 million oz.

Details of the resource estimate by deposit are available at TMACresources.com

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