Unigold delivers robust PEA for Candelones oxide project
PEA assumes 5,000 tonnes per day run-of-mine heap leach operation with average annual payable gold production of 31,000 oz.
The company said that PEA delivers 50% Pre-Tax Internal Rate of Return ("IRR") and 35% After-Tax IRR; US$50 Million Pre-Tax Net Present Value ("NPV") and US$34 Million After-Tax NPV. After-Tax Payback Period is 1.8 years from start of production. Average annual after-tax free cash flow is US$23 Million.
Initial capital expenditure is US$36 Million (includes US$5 Million for EPCM and indirect costs in addition to US$5 Million as contingency) and all-in sustaining costs are US$744/oz Au.
The company noted that the economics of the project are compelling enough that this is being considered as a stand-alone operation providing near term cash flow as the company continues to expand and evaluate the larger sulphide resource which Unigold believes offers a longer-term development opportunity.
Unigold is a Canadian based mineral exploration company focused primarily on exploring and developing its gold assets in the Dominican Republic.