Caldas Gold Announces Results of Pre-Feasibility Study for Expansion of Its Marmato Project in Colombia

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[{"type":"text","content":" TORONTO, July 06, 2020 (GLOBE NEWSWIRE) -- Caldas Gold Corp. (TSX-V: CGC; OTCQX: ALLXF) announced today that it has completed an updated Mineral Resource estimate for its Marmato Project prepared in accordance with the Canadian Institute of Mining Metallurgy and Petroleum (“CIM”) Definition Standards incorporated by reference in National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) with an effective date of March 17, 2020. Caldas Gold also announced today that SRK Consulting (U.S.), Inc. (“SRK”) has completed preliminary results of a Preliminary Feasibility Study (“PFS”) for the Marmato Project effective March 17, 2020 and is currently finalizing the technical report to be prepared in accordance with NI 43-101 and filed on SEDAR and the Company’s website in August 2020. Serafino Iacono, Chairman and CEO of Caldas Gold, commented “We are very pleased with the results in the PFS for the Marmato Project. The study affirms the economic viability of the project and the strength and potential for upside validating Wheaton Precious Metals’ decision to enter into a US$110 million stream transaction as part of our financing for the expansion of our mining operations. With a continuation of our drilling programs in the Deeps Mineralization, we are confident that we will be able to continue to expand Mineral Resources at Marmato and add to the mine life.” Highlights of the PFS for the Marmato Project The PFS affirms the economic viability of the underground expansion of the Marmato Project. At a long-term gold price of US$1,400 per ounce, total life-of-mine (“LoM”) undiscounted after-tax free cash flow from mining operations amounts to US$770.0 million. After the initial capital costs of approximately US$269.4 million for expansion into the Marmato Deep Zone (“MDZ”), undiscounted after-tax project cash flow amounts to US$500.6 million. At a 5% discount rate, the net present value of the total LoM after-tax project cash flow amounts to US$263.9 million. Before financing, the project has a 20.1% after-tax internal rate of return and payback by 2026. The 2019 Phase 2 drilling program successfully upgraded Mineral Resources from the Inferred category to the Measured and Indicated category to support the PFS. Mineral Resources in the Measured and Indicated category doubled to a total of 4.1 million ounces of g...

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