Westhaven Gold's (TSXV: WHN) Shovelnose gold project in south-central British Columbia could produce a total of 534,000 oz. gold and 2.7 million oz. silver over 9.5 years, according to a preliminary economic assessment (PEA) released on Tuesday.
The report focuses on the South zone at Shovelnose and puts preproduction capital costs at $149.6 million and total capital costs at $247 million. Sustaining capital costs are estimated at $104.9 million.
The PEA gives Shovelnose an after-tax net present value (NPV), at a 6% discount of $222 million, with an internal rate of return (IRR) of 32.3%. Using spot prices of US$1,950 gold and US$24 silver, the NPV increases to $268.4 million and after-tax IRR to 37.2%. The study used a production rate of 1,000 tonnes per day.
Life-of-mine annual payable production is estimated at 56,100 oz. gold and 284,200 oz. silver at all-in sustaining costs per oz. gold equivalent of US$752. The study estimates average production grades of 5.37 grams gold per tonne and 28.62 grams silver.
“Results from this PEA certainly underpin a significant property value with serious economic benefits and provide an excellent cornerstone from which to build upon,” said company CEO Gareth Thomas. “Westhaven’s continued focus is on exploration and expanding the gold-silver mineral inventory outside the South Zone.”
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