Golden Independence Mining Corp. (CSE: IGLD) (OTCQB: GIDMF) has released a positive Preliminary Economic Assessment (PEA) for the company’s flagship Independence Project which adjoins Nevada Gold Mines’ Phoenix-Fortitude mining operations in the Battle Mountain-Cortez trend of Nevada.
Independence PEA highlights include:
- After-Tax NPV5% of US$35 million with an IRR of 18% at US$1,700/oz gold and US$24/oz silver
- Significant leverage to metal prices with after-tax NPV5% of US$45M and IRR of 22% at spot prices
- Average annual production of 32,050 oz gold at an AISC of US$1,078/oz (net of silver credits)
- LOM production of 195,443 oz gold and 1,281,420 oz silver
- LOM after-tax cash flow of US$59 million at Base Case prices and US$72 million at spot prices
- Initial Capital of US$63 million including working capital and contingencies
- Mine life of 6.1 years exploiting only 60% of the near surface resource contained within a US$1,800/oz gold price pit
“The PEA shows that at Base Case gold prices of US$1,700 per ounce, the heap leach component of the Independence Project has a significant positive net present value and very strong leverage to the gold price,” CEO, Christos Doulis, said.
“At current spot prices, the project’s estimated net present value increases by over 30% to US$45 million with an after-tax IRR of 22%.
“Our focus in 2022 will be to continue to examine opportunities to significantly grow the Project though additional exploration work and strategic acquisition, additionally, unlocking the value of the high-grade skarn, and advancing and expanding the heap leach component of the Project.”
The PEA was completed by Dyer Engineering and Kappes, Cassidy & Associates, both of Reno Nevada, and provides an attractive preliminary economic case for the near-surface development of the Independence project.
The PEA is based on the mining and processing a total of 20 Mt of ore grading 0.4 g/t gold and 7.0 g/t silver incorporating only 60% of the near surface resource constrained by a US$1,800/oz gold price pit.
The PEA envisions a 9,000 tonne per day open pit and heap leach operation with a Merrill-Crowe circuit. Significant opportunities exist for improvement and optimization including potential for shared infrastructure with the adjacent Phoenix operating mine.
The study envisions a mine-life of just over six years, producing 195,443 oz of gold and 1.28 million oz of silver with life-of-mine all-in sustaining costs, net of silver credits, of US$1,078 per oz of gold. This generates an After-Tax NPV5% of US$34.5 million and an IRR of 18% using Base Case metals price assumptions of US$1,700/oz gold and US$24/oz silver.
Mineral Resource Estimate
The PEA is based on an updated mineral resource estimate effective November 15th, 2021 with the near-surface resource being constrained by a US$1,800/oz gold price to arrive at a pit-constrained resource as outlined in the table below. This current pit-constrained resource supersedes previous resource estimates for the project.
For further information please visit: https://goldenindependence.co/
