Superior Gold delivers robust PEA for the Plutonic project
|Plutonic mine. Image credit: Superior Gold.|
(Kitco News) - Superior Gold (TSXV: SGI) today announced positive results from the independent Preliminary Economic Assessment ("PEA") as well as an updated Mineral Resource estimate at its 100%-owned Plutonic gold operations, located in Western Australia.
PEA demonstrates the potential of the Plutonic Main Pit to be a robust open pit gold mine with compelling project economics. Based on the results of the PEA, the Company expects to proceed to a Pre-Feasibility Study ("PFS") for the Plutonic Main Pit push-back project.
PEA delivers robust economics with after-tax Net Present Value (5% discount rate) of $120 million and an after-tax Internal Rate of Return of 35% at $2,150 per ounce of gold (US$1,505 per ounce).
Plutonic is low capital intensity project with only $82 million pre-production capital cost net of $22 million of pre-production revenue.
PEA assumes average production of 60,000 ounces gold per year over six years for 357,000 ounces of total production.
Life-of-mine all-in sustaining cost is low at US$863 per ounce gold.
Proceeding to a PFS expected to be completed in the first half of 2022.
Updated Measured and Indicated Mineral Resources stand at 1.89 million ounces of gold (16.26 million tonnes at a 3.6 g/t Au grade); Inferred Mineral Resources are now 3.07 million ounces of gold (30.55 million tonnes at a 3.1 g/t Au grade).
Interim CEO Tamara Brown stated: "The Plutonic Main Pit push-back project starts to unlock the significant value sitting within the Plutonic Gold Operations. It is a technically simple, high-return, brownfield gold project in one of the most favourable mining jurisdictions in the world, with all necessary infrastructure already in place. The PEA defines robust project economics based on reasonable capital expenditures. This low capital intensity derives from leveraging the existing Plutonic infrastructure and the simplicity of the project which will utilize conventional open pit mining techniques and proven existing processing operations.”
Superior Gold is a Canadian based gold producer that owns 100% of the Plutonic Gold Operations located in Western Australia. The Plutonic Gold Operations include the Plutonic underground gold mine and central mill, numerous open pit projects including the Plutonic Main Pit push-back project, the Hermes open pit projects and an interest in the Bryah Basin joint venture. Superior Gold is focused on expanding production at the Plutonic Gold Operations and building an intermediate gold producer with superior returns for shareholders.