Mawson Gold Limited (TSX:MAW) (Frankfurt:MXR) has obtained robust results from a maiden preliminary economic assessment (PEA) on its 100% owned Rajapalot gold-cobalt project in northern Finland.
The PEA considers a target 1.2 million tonnes per annum underground mining operation over a period of nine years with an on-site processing facility to produce gold doré and cobalt concentrate.
Highlights:
- Robust economics underscores significant value of current resource base
- $211 M post-tax NPV5 (real) using $1,700/oz gold (Au) and $60,000/t cobalt (Co)
- AISC $824/oz Au life of mine (LoM)
- >92 koz gold equivalent “AuEq2” steady state average production rate. Nine year LoM producing ~700 koz Au and ~2800 t Co
- A significant European mine
- If in production today, Rajapalot could be the EU’s third largest cobalt mine and sixth largest gold mine
- Ethical metals sourcing with majority local support and 100% renewable power
- 27% post tax IRR, $191 M initial capex
- Strong cashflows, with $338 M free cash flow in years 1 to 5, and $101 M in LoM cobalt by-product revenues
- 100% owned low-cost project in Tier 1 location
- Underground only operation, utilising predominately long hole open stoping
- 95% Au recovery with conventional gravity-CIL
- Low infrastructure needs
- PEA underpins project to leverage substantial resource growth potential
- Rajapalot deposits are all open at depth, highlighted by the deepest intersection in Palokas of 30.8 m @ 5.1 g/t AuEq from 553 m (announced August 3, 2021).
- 18,000 ha land package with undrilled targets between the project area and other significant gold occurrences such as the Rompas discovery (highlight 6.0 m @ 617 g/t Au, 8.0 km west of Rajapalot.
“This is the first project wide techno-economic assessment that underpins the significant value of Rajapalot – to Mawson, and to Europe,” CEO, Ivan Fairhall, said.
“These incredibly robust results demonstrate a clear case for a mine at Rajapalot and bring out its quality fundamentals: a deposit with high mining and metallurgical efficiency which results in over 80% of every ounce found converted into doré, at an extremely attractive AISC of $824/oz Au.
“The production of ethical cobalt to EU environmental standards, critical for global and European energy transition, strengthens the strategic attractiveness of the project.
“Finland is not only one of the world’s lowest risk jurisdictions – it is also a great place to build and operate a mine, with an established mining industry, competitive labour and energy cost base, fantastic infrastructure and low taxes – all permanent features benefiting this starter case, and beyond, as more ounces are discovered on the property.”
For further information please visit: https://mawsongold.com/
