Business
Canarc Updates Preliminary Economics for the New Polaris Gold Mine Project, BC; $1500 Gold Price and $0.71 Exchange Rate Improve NPV to US$333 Million and 56% IRR After Tax
VANCOUVER, BC / ACCESSWIRE / May 20, 2020 / Canarc Resource Corp. (TSX:CCM)(OTCQB:CRCUF)(Fr...
About this update from Canagold Resources Ltd
[{"type":"text","content":"Canarc Updates Preliminary Economics for the New Polaris Gold Mine Project, BC; $1500 Gold Price and $0.71 Exchange Rate Improve NPV to US$333 Million and 56% IRR After TaxVANCOUVER, BC / ACCESSWIRE / May 20, 2020 / Canarc Resource Corp. (TSX:CCM)(OTCQB:CRCUF)(Frankfurt:CAN) announces that an update of the gold price and exchange rate within the range of sensitivities in the 2019 preliminary economic assessment (\"PEA\") of the high-grade New Polaris gold mine project in northwestern British Columbia significantly improves the anticipated economics of the project.The 2019 PEA used a base case gold price of US$1300 per oz and a $CDN: $US exchange rate of 0.77 to generate an after-tax Net Present Value (\"NPV\") of US$216 million and an after-tax Internal Rate of Return (\"IRR\") of 38%. At a US$1500 per oz gold price and a 0.71$CAD: USD exchange rate, the forecasted economics significantly improve to a US$333 million after-tax NPV and a 56% after-tax IRR.Other benefits of the lower exchange rate include reductions of the cash operating cost from US$433 per oz gold to US$400 per oz gold, and of the payback period from 2.7 years to 1.9 years. All parameters and conditions of the NI43-101 PEA by Moose Mountain Technical Services (\"Moose Mountain\") dated February 28, 2019 PEA remain unchanged.Scott Eldridge, Canarc's CEO, stated: \"These updated economic assumptions clearly demonstrate the potential for our New Polaris gold mine project to become a high-margin, low-cost gold mine. The 2019 PEA incorporated flotation, bio-oxidation and CIL plant circuits to produce doré gold bars, a game-changer that offers substantial operational and financial advantages over prior plans to ship flotation concentrates by barge and truck to offshore facilities for final processing.\" Summary of New Polaris Operating & Financial Parameters:Post-tax internal rate of return improves to 56% from 38%Post-tax net present value at 5% improves to US$333 million from US$216 millionPost-tax project payback improves to 1.9 years from 2.7 yearsCash operating cost decreases to US$400 per oz gold from US$433 per oz goldMine production of 2.3 million tonnes grading 10.3 grams per tonne over an 8.7-year mine lifeMill throughput of 750 tonnes per day with a process recovery of 90.5% to produce a total of 693,000 oz. goldAverage annual life of mine productio...