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Moneta Gold focuses on completing a prefeasibility study for its Tower Gold project

Kitco News

(Kitco News) - With its preliminary economic assessment released last month, Moneta Gold (TSE:ME) is now working towards a prefeasibility study, said Gary O'Connor, president and CEO of Moneta Gold.

Last week O'Connor spoke to Kitco at the 2022 Precious Metal Summit Zurich.

Moneta is a Canadian-based gold exploration company focused on advancing its 100% wholly owned Tower Gold project, located in the Timmins region of Northeastern Ontario. Tower Gold hosts an estimated gold mineral resource of 4.5 Moz indicated and 8.3 Moz inferred.

In October the company published a preliminary economic assessment. At a base case gold price assumption of US$1,600 per ounce, the PEA supported a 24-year mine life with average annual gold production of 261,014 ounces for the first 11 years and 4,581,000 ounces of total gold production over the life of mine. The mine would generate an after-tax NPV5% of $1,066 million and IRR of 31.7%, with cash costs and AISC of US$910 per ounce and US$1,073 per ounce, respectively. Initial capital cost would be $517 million.

The next step for Moneta to advance is a prefeasibility study. O'Connor said the company needs to do 100,000 meters of remaining in-fill drilling for the PFS. The company has already drilled about 60,000 needed for the study.

"We'll complete the rest of the hundred thousand meters over the next year then we'll upgrade the
resource. At that stage we'll use that upgraded indicated resource for the actual pre-feasibility," said O'Connor.

Kitco Mining's coverage of 2022 Precious Metal Summit Zurich was sponsored by Inventa Capital.

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