(Kitco News) - Benchmark Metals (TSX-V: BNCH) today announced the completion of a Preliminary Economic Assessment (“PEA”) on the Lawyers gold-silver project located in British Columbia, Canada.
The company said that the PEA presents a robust open pit mining operation with attractive economics at base case gold and silver prices (US$1,735 per ounce of gold and US$21.75 per ounce of silver), with pre-tax NPV5% of C$921M, IRR of 30.5%, and 2.1-year payback, and after-tax NPV5% of C$577M, IRR of 23.5%, and 2.7-year payback.
The study assumes total resource production of 46.3 M tonnes over 12-year mine life, with average annual production of 169k AuEq ounces, LOM production 2.02M payable AuEq ounces, and all-in sustaining costs (net of by-products) of US$ 824/Au oz.
The PEA considers a conventional truck and shovel open-pit mining operation. However, the company said that there is a strong opportunity to enhance the base case economics with supplemental feed from underground operations.
CEO John Williamson commented, “The PEA clearly demonstrates the low cost and robust return of the Lawyer’s gold-silver project even when stress tested with considerable contingency in the base case. We continue on a straightforward pathway to advancement. We continue to test new targets on the large prospective land package to add value to a project that is simple, low risk with a high-grade near surface open-pit resource, combined with proximity to existing infrastructure, making it one of the best candidates to become British Colombia’s next precious metal mine.”
Benchmark Metals is a Canadian based gold and silver company advancing its 100% owned Lawyer’s gold-silver project located in the prolific Golden Horseshoe of northern British Columbia, Canada. The project consists of three mineralized deposits that remain open for expansion, in addition to +20 new target areas along the 20-kilometre trend.
