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West Vault reports IRR of 51% in updated PFS for its Hasbrouck gold project in Nevada

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(Kitco News) - West Vault Mining (TSXV: WVM) today announced the results of an independent pre-feasibility study (PFS) for the company’s 100% owned Hasbrouck gold project located near Tonopah, Nevada.

The company said that the PFS updates a September 2016 PFS, reflecting the effect of increased capital costs, operating costs, and metal prices on project economics, and their combined effects on mineral resources and mineral reserves, adding that the mine plan, mineral processing, and mineral resource and mineral reserve statements are substantially unchanged from the 2016 PFS.

According to the updated PFS results, at $1,790 per ounce gold price ($1,275 per ounce in 2016 PFS), the project is expected to generate NVP(5) (after-tax) of US$206 million (US$120 million in 2016 PFS) and IRR (after-tax) of 51% (43% in 2016 PFS), with initial capital of US $66 million (US$47 million in 2016 PFS) and pay-back of 2.9 years (3.1 years).

The PFS also delivers 585,000 recoverable gold equivalent ounces (595,000 ounces in 2016 PFS) and all-in sustaining cost of US$877 per gold ounce (US$709 per ounce in 2016 PFS) for the project.

CEO Sandy McVey commented, “We are very pleased with the results of the technical report. It confirms that the project is economically robust but more importantly that it positively correlates to gold price increases, going from a 43% IRR in 2016 to a 51% IRR now.

“This validates our thesis that Hasbrouck is gold-price sensitive and that our shareholders will benefit through the company’s ownership of a high-quality project in an excellent jurisdiction, knowing that we will patiently let the gold cycle do the work of increasing value rather than taking the risk of proceeding to construction too soon.”

The Hasbrouck gold project consists of the Three Hills and Hasbrouck deposits plus a large land package, located near Tonopah, Nevada. The project is permitted and construction-ready.


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