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GMV Minerals Inc. Announces PEA Results at Mexican Hat Gold Project in S.E. Arizona
Vancouver, British Columbia--(Newsfile Corp. - November 3, 2020) - GMV Minerals Inc. (TSXV: ...
About this update from Gmv Minerals Inc
[{"type":"text","content":"GMV Minerals Inc. Announces PEA Results at Mexican Hat Gold Project in S.E. ArizonaVancouver, British Columbia--(Newsfile Corp. - November 3, 2020) - GMV Minerals Inc. (TSXV: GMV) (OTCQB: GMVMF) (the \"Company\" or \"GMV\") is pleased to announce positive results from the Preliminary Economic Assessment (\"PEA\") study of the Mexican Hat Gold Project (\"Mexican Hat\"), located in Cochise County, Southeastern Arizona. The Report is entitled \"NI 43-101 Technical Report Updated Preliminary Economic Assessment, Mexican Hat Project\". All amounts are stated in second quarter 2020 US dollars.Located in gold mining friendly Arizona, the Mexican Hat is a low-capital, open-pit, heap-leach investment opportunity. Highlights:The Base Case generates a pre-tax Internal Rate of Return (\"IRR\") of 39.3% (after tax 29.3%) and a pre-tax net present value (\"NPV\") at a 5% discount rate of $150.6 million (after tax $100.0 million) with a 2.85 year payback of invested capital using a $1,600 per ounce gold price.Based on price sensitivity analysis at approximately the current price of $1,900 per ounce of gold, the project returns a pre-tax IRR of 58.3% (after tax 44.3%) and a pre-tax NPV at a 5% discount rate of $265.1 million (after tax $182 million) with a payback period of 2.10 years.Base Case mine life of 10 years with total production of 525,000 ounces, averaging 52,500 ounces per year.Crushed mineralized material will be conveyor stacked at a rate of approximately 10,000 tonnes/day on a conventional heap leach pad.Capex: $67.8M (including $12.2M contingency).Opex: Low LOM Strip Ratio of 1.87.Estimated cash cost of production is $951 per ounce with an all-in-sustaining cost of $1,136 per ounce inclusive of sustaining capital and additional overhead support.Engineering design analysis indicates the potential to increase pit size and contained ounces with increased gold prices.FINANCIAL INDICATORSThe following table summarizes the financial indicators for the Mexican Hat project for both before and after taxes.Financial Indicators Before Taxes ValuesNPV cash flow (undiscounted) US$220.4MNPV @ 5% US$150.6MIRR %39.3%Payback (years)2.85Financial Indicators After TaxesValuesNPV cash flow (undiscounted)US$153.0MNPV @ 5% US$100MIRR %29.3%Payback (years)2.85 GOLD PRICE SENSITIVITY TABLEThe following table summarizes the pre-tax and post-tax econ...