Stormlands Mining, an Ireland-based data analytics company, has released a new case study on Sonoro Gold’s Cerro Caliche project in Mexico. The company’s artificial intelligence (AI) generated results the company said doubled the project valuation.
Using updated gold and silver prices, Stormlands modelled a net present value (NPV) increase of US$253 million. Drawing on the same dataset, the life-of-mine revenue increased from US$1.6 billion in the base case to US$2.24 billion, with Life-of-mine EBITDA increasing from US$726.2 million to US$1.35 billion. The modelled payback period went from 1 year and 7 months to 11 months.
In a news release, Róisín O’Connell, the chief executive officer at Stormlands, said these numbers are a clear indication that economic reports should be dynamically updated with changing metal prices. “In this published case study, we have only updated the commodity price assumptions, while keeping the mine plan, costs, recoveries, capital and fiscal assumptions unchanged. Even that single change has a material impact on valuation,” she said.
The case study follows previous Stromlands efforts to create a set of resources for mining companies to predict and assess economic conditions. Other studies have re-examined Whistler and MPD projects.
The Cerro Caliche gold project is Sonoro’s flagship open‑pit heap leach mining operation.
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