Anaconda delivers robust feasibility study for its Goldboro gold project in Nova Scotia
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In a statement, the company said that the results of the Feasibility Study for Goldboro demonstrate strong economics with a mine life of approximately 11 years and average annual gold production of 100,000 ounces with average diluted grade of 2.26 grams per tonne.
At a C$2,000 gold price (US$1,600), the project’s after-tax NPV5% is C$328 million and an after-tax IRR is 25.5%, with projected after-tax payback of 2.9 years. Initial capital cost is C$271 million and LOM sustaining capital is C$63.1 million. Life-of-Mine Operating Cash Cost is C$966 (US$773) per ounce and All-In Sustaining Cost is C$1,062 (US$849) per ounce.
Importantly, the company said that at a gold price of C$2,200 (~US$1,760), Goldboro could generate cumulative after-tax net cash flows of approximately C$684 million, an after-tax NPV5% of over C$442 million and an after-tax IRR of 31.7%.
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The company added it continues to work on an Environmental Assessment Registration Document, which is expected to be filed in Q2 2022.
More importantly, Anaconda noted that the Goldboro Deposit continues to be open in all directions and that the company believes there is further potential to expand the Goldboro Deposit along strike and at depth.
"The Study demonstrates robust economics at a C$2,000 gold price (US$1,600) with an after-tax NPV5% of C$328 million, an after-tax IRR of 25.5% with a payback of 2.9 years, all in a top tier Canadian jurisdiction," said President and CEO Kevin Bullock. "This Study is a critical first step of our long-term development plan, which in the future will consider further technical studies to incorporate the high-grade underground mineral resource into the operation. Importantly, there continues to be tremendous upside potential at the Goldboro Deposit, which remains open in all directions."