Minera Alamos announces PEA
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(Kitco News) - Minera Alamos (TSXV: MAI) announced today positive results of an independent preliminary economic assessment for its Cerro de Oro project in Zacatecas, Mexico.
The company was up 6% to 51 cents a share.
Highlights of PEA were the following:
- Average annual gold production approaching 60,000oz (~60,000oz to 70,000oz in Years 1 through 4).
- 8.2 year mine life based on initial mineable total of 59 Mt of mineralization (0.37 g/t Au) heap leached at an average rate of approximately 20,000 tpd -- +0.40 g/t Au in Years 1 through 4.
- 477koz of gold produced in loaded carbon/doré.
- LOM strip ratio of 0.3:1 (waste: mineralization)
- Robust economics using metals prices of $1,600/oz Au
- Life on mine all-in sustaining cost of $873/oz, averaging $763/oz in Years 1 through 4.
- After-Tax NPV at 5% of $150.5M and IRR of 111%.
- Pre-production capital costs of $28.1M (includes 30% contingency).
- Payback period of 11 months.
- Used crushing plant already purchased reduces up-front capital requirements.
"Leaning on our team's collective experience in mine building in Mexico with capital and operating costs informed by the recent construction and ramp up of the Santana gold mine, the Cerro de Oro PEA is a game changer for Minera as we strive to reach our initial target of a +100,000 oz/y gold producer," commented Doug Ramshaw, President. "Given the rampant inflationary pressures across the industry, it is a testament to Minera's smart and nimble business model that a new mine could be developed at Cerro de Oro for the low capital intensity presented in the PEA."
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