P2 Gold (TSXV: PGLD; OTCQB: PGLDF) has announced results from a positive preliminary economic assessment (PEA) on its wholly owned gold-copper Gabbs project on the Walker-Lane Trend in Nevada. The PEA was prepared by Kappes, Cassiday & Associates with Mineral Resource and mining contributions from P&E Mining Consultants Inc.
The highlights of the PEA include an open pit, heap leach operation focused predominantly on oxide gold and copper mineral resources, an after-tax net present value of US$163.1 million and internal rate of return of 16.7%, and a mine life of just over 11 years. Life of mine gold-equivalent production is stated at 837,000 oz. and estimated pre-production capital costs are US$230 million.
The PEA assumes US$1,950 gold and US$4.50 copper.
Joe Ovsenek, president and CEO of P2, stated that the PEA provides a solid plan for advancing phase one development at Gabbs, and that their next goal is to optimize the mine plan and capex, evaluate contract mining, and complete additional metallurgy. Ovsenek also said Gabbs has considerable oxide mineral resource expansion potential to extend phase one operations and that phase two will focus on the development of the sulphide mineralization.
The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. The company has not defined any mineral reserves on the Gabbs project.
P2 Gold also owns the BAM gold-copper project in British Columbia as well as the Gabbs project. Learn about both at www.P2Gold.com.