(Kitco News) – Immediately, GoGold Assets (TSX: GGD) launched the outcomes of its preliminary Preliminary Financial Evaluation (“PEA”) at its Los Ricos South venture positioned in Jalisco State, Mexico.
Highlights of PEA embody after-tax NPV (utilizing a reduction charge of 5%) of $295 million and an after-tax IRR of 46% (base case), with a base case silver worth of US$21.00/ozand gold worth of US$1,550/oz.
PEA assumes a 11-year mine life producing a complete of 69.6 million payable silver equal ounces (“AgEq”), consisting of 42.9 million silver ounces, 352,000 gold ounces and 4.5 million copper kilos.
Preliminary capital prices are $125 million, together with $16 million in contingency prices, over an anticipated 18-month construct, and extra sustaining capital prices of $62 million over the lifetime of mine.
Common LOM working money prices are $8.65/ozAgEq, and all in sustaining prices are $11.35/ozAgEq.
“The acquisition of the Los Ricos district, solely 22 months in the past in March 2019, has confirmed to be an amazing catalyst of development for GoGold,” mentioned President and CEO Brad Langille. “Extra importantly, this has been achieved with the primary of many targets within the Los Ricos district. This PEA demonstrates the robust economics of the district which is able to proceed to broaden as we drill extra targets,” concluded Langille.
GoGold Assets is a Canadian-based silver and gold producer centered on working, creating, exploring and buying top quality tasks in Mexico. The corporate operates the Parral tailings mine within the state of Chihuahua and has the Los Ricos South and Los Ricos North exploration tasks within the state of Jalisco.
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