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Maritime reports positive feasibility study for Hammerdown gold project with 48.1% IRR

Kitco Media
By Vladimir Basov
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(Kitco News) - On Tuesday, Maritime Resources (TSXV: MAE) announced positive feasibility study results for the 100% owned Hammerdown gold project in the Baie Verte mining district of Newfoundland and Labrador, Canada.

The company said that the feasibility study envisions an open pit mine with run of mine grade of 4.46 grams per tonne Au, LOM; on-site crushing and sorting plant producing 700 tonnes per day of mill feed grading 6.76 gpt Au, with LOM payable gold production of 247,000 oz, averaging 50,000 ounces annually.

At the base case gold price (US$1,750 per ounce Au and a $0.77 US$/C$ exchange rate), the project generates an after-tax NPV5% of C$102.8M and an after-tax IRR of 48.1%. Payback on initial capital is 1.7 years.

LOM after-tax free cash flow is estimated at C$129.7M on an undiscounted basis. Average after-tax free cash flow while mining Hammerdown is estimated at C$41.4M per annum.

Maritime added that estimated initial capital cost is C$75.0M with C$4.9M in net sustaining capital, while all-in sustaining cost is US$912/oz gold.

The company said that the feasibility study supports a technically straightforward, brownfields open pit mine and gold processing operation benefiting from low capital investment and rapid payback.

“The attractive financial return profile enables the company to pursue mine life extensions, and follow-up on exciting exploration opportunities within Maritime's 400 km2 land package in the Baie Verte mining district,” the company noted in a statement.

Maritime holds a 100% interest- directly and subject to option agreements entitling it to earn 100% ownership- in the Green Bay Property. This includes the former Hammerdown gold mine and the Orion gold project plus the Whisker Valley exploration project, all located in the Baie Verte Mining District near the town of King's Point, Newfoundland and Labrador.

Hammerdown was last operated by Richmont Mines between 2000 and 2004. The company also owns the gold circuit at the Nugget Pond metallurgical facility in Newfoundland and Labrador, the Lac Pelletier gold project in Rouyn Noranda, Québec and several other exploration properties in key mining camps across Canada.

DRDGOLD's operating profit down 22% in FY22 on rising costs, as gold production unchanged
Kitco Media

Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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