Novo delivers robust PEA for Beatons Creek gold project in Australia
(Kitco News) - Today, Novo Resources (TSX: NVO & NVO.WT; OTCQX: NSRPF) announced the completion of a preliminary economic assessment ("PEA") for the company's 100%-owned Beatons Creek conglomerate gold project, located in the Pilbara region of Western Australia.
According to the statement, Beatons Creek PEA shows the potential for average 100,000 oz conglomerate gold production per year over 6 years for 627,000 oz potential total production over life of mine, excluding current underground resources. LOM C1 cash costs are US$702/oz and LOM all-in sustaining costs are US$974/oz.
At a gold price of US$1,700/oz, there is a potential for pre-tax US$318 million (C$400 million) NPV 5% and average annual EBITDA of US$88 million / post-tax US$250 million (C$315 million) NPV 5%.
"Completion of this PEA demonstrates the strength of Beatons Creek," commented Quinton Hennigh, Chairman and President of Novo Resources. "The PEA indicates the potential viability of mineral resources at Beatons Creek, with a competitive AISC of US$974/oz. The robust anticipated cash generation reported by the PEA should support Novo's exploration activities across its vast holdings in the Pilbara, with further potential to grow production organically."
Novo is commissioning its flagship Beatons Creek gold project while exploring and developing its highly prospective land package covering approximately 14,000 square kilometres in the Pilbara region of Western Australia.