Make Kitco Your Homepage

Unigold delivers robust PEA for Candelones oxide project

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Unigold (TSX-V:UGD) today provided the results from the independent Preliminary Economic Assessment ("PEA") on its 100% owned Candelones oxide project in the Dominican Republic.

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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.