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Auryn Delivers Positive Preliminary Economic Assessment for Homestake Ridge Gold Deposit
US$108 Million NPV 5% with IRR of 23.6% at US$1,350/oz Gold; US$670/oz gold AISC [1] U...
About this update from Fury Gold Mines Limited
[{"type":"text","content":"Auryn Delivers Positive Preliminary Economic Assessment for Homestake Ridge Gold DepositUS$108 Million NPV 5% with IRR of 23.6% at US$1,350/oz Gold; US$670/oz gold AISC[1]US$173 Million NPV 5% with 32% IRR at US$1,620/oz GoldUS$88 Million Pre-Production Capital ExpendituresVANCOUVER, BC / ACCESSWIRE / April 15, 2020 / Auryn Resources Inc. (TSX:AUG)(NYSE American:AUG) (\"Auryn\" or the \"Company\") is pleased to announce positive results from an independent preliminary economic assessment (PEA) and an updated resource estimate for its 100% owned 7,500 hectare Homestake Ridge gold project located in the prolific Iskut-Stewart-Kisault gold belt in northwestern British Columbia, Canada (Figure 1). The PEA demonstrates the project's potential to become a high-grade, small footprint, underground gold mine with positive economics and upside potential from both a rising gold price and prospective expansion. The PEA presentation can be viewed by clicking here, and a visualization of the Life Of Mine (LOM) model can be viewed here.A Message from Ivan Bebek, Executive Chairman and Director: \"This is an early look into the Homestake Ridge high-grade gold project's current value, which demonstrates a highly profitable deposit with a low capex in an established mining jurisdiction, and importantly, it is open for considerable expansion.\"We took a conservative approach in our study to see the project's resilience at $1,350 gold, which generated a 23.6% IRR, however, at $1,620 gold the project generates an IRR of 32% and an NPV of over US$173 million.\"The Homestake Ridge gold project is a valuable part of our portfolio, which also includes multiple tier-one exploration opportunities, such as Sombrero and Curibaya in southern Peru and Committee Bay in northern Canada. We are very much looking forward to advancing our portfolio as we continue to see improving metal prices.\"PEA Summary:Base Case: $1,350/oz gold, $12/oz silver, $3.00/pound copper, $1.00/pound lead and an exchange rate of 0.70 (US$/C$)Net present value (NPV 5%) after tax and mining dutiesUS$108 millionInternal rate of return (IRR) after tax23.6%Pre-production capital costsUS$88 millionAfter tax payback period36 monthsAll in sustaining costs (AISC) per ounce goldUS$670PEA life of mine (LOM)13 yearsLOM metal production gold equivalent ounces590,040 AuEq ouncesLOM average diluted h...