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Scoping Study: 84% IRR at a US$1,400 Gold Price
Scoping Study: 84% IRR at a US$1,400 Gold Price.
About this update from Cora Gold Ltd.
[{"type":"text","content":"\n \nRNS Number : 9561Z Cora Gold Limited 16 January 2020 \n\nCora Gold Limited / EPIC: CORA.L / Market: AIM / Sector: Mining\n16 January 2020\nCora Gold Limited ('Cora Gold', 'Cora' or 'the Company')\nSanankoro Scoping Study: 84% IRR at a US$1,400 Gold Price\n \nCora Gold Limited, the West African focused gold exploration company, is pleased to announce the results of its initial Scoping Study (the 'Study') on the Sanankoro Gold Project (the 'Project' or 'Sanankoro'), which validates its future economic potential. The Study, overseen by Wardell Armstrong International ('WAI'), investigated the potential development of the near surface oxide resources, which the Company expects to expand significantly in time to incorporate additional oxide and sulphide potential.\n \nTo view the press release with illustrative diagrams and maps, please use the following link: http://www.rns-pdf.londonstockexchange.com/rns/9561Z_1-2020-1-15.pdf\n \nHighlights\n· Results of the Study show good initial validation of the Project's future economic potential\n· At US$1,400 gold price, a 1.5Mtpa Heap Leach Mine delivers:\no 84% Internal Rate of Return ('IRR')\no +US$19m per year average free cash flow generation\no US$30.9m net present value ('NPV') at 8% discount rate\no US$942 per oz All in Sustaining Cost ('AISC')\no +45,000 ozs per year average production\no US$20.6m pre-production Capital Expenditure ('capex')\no Payback period of less than 18 months\n· Good potential to increase Mineral Resources given under 25% of the total 40 linear km strike length of the potential mineralised zones identified has been drilled to date\n· SRK has defined an exploration target of 1-2Moz gold limited to 100m depth which was re-confirmed with the maiden resource on the 5 December 2019\n \nBert Monro, CEO of Cora, commented, \"This Scoping Study shows Sanankoro has the potential to be a highly profitable standalone oxide mine, delivering a high IRR and short capex payback, with an annual average free cash flow of over US$19m at a US$1,400 gold price. The key will be to drill out more oxide resources to extend the mine life and sustain the cash flow well beyond this maiden study. To date, we have only dri...