Belaya Gora/Blagodatnoye PFS and Resource Update
PFS HIGHLIGHTS
- Resource Update for the combined Belaya Gora and Blagodatnoye operation with total gold reserves of 932k oz at a grade of 1. 44 g/t versus the previously reported 291k oz @ 3.3 g/t for Belaya Gora alone (1 January 2017).
- New mining plans for Belaya Gora and Blagodatnoye, both of which are open-pit operations, envisioning the processing of Blagodatnoye ore at the Belaya Gora mill and a combined life of mine extending until the year 2032.
- Estimated capital expenditures of US$ 15 million for upgrades to the Belaya Gora processing plant, which encompasses the addition of a carbon-in-pulp (CIP) circuit, to improve recoveries from the current 72% to a range of 86-91% for Belaya Gora ore and 90% for Blagodatnoye ore.
- Estimated capex of US$ 21 million in 2023 to move mining activity from Belaya Gora to Blagodatnoye, including the purchase of a crushing circuit, road construction and upgrades, and equipment replacement.
- Average annual production of 55 koz over the life of mine.
- Total life of mine production of 820 koz at an average total cash cost of US$ 802/oz and all-in sustaining costs of US$ 848/oz.
- Post-tax NPV@10% of US$ 97 million and IRR of 142% for the combined project, excluding historical costs and based on a gold price of US$ 1250/oz.
The revised Mineral Resource estimate for Belaya Gora more accurately reflects the actual mining experience and takes into account the results of a two-year drilling programme, which identified additional mineral resources. The Ore Reserve estimate also accounts for improved project economics, which increased the limits of the open pit.
Estimates for Blagodatnoye likewise follow an extensive drilling programme in 2016-2017 to confirm the deposit's resources.
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