Business
Golden Arrow Announces Updated Preliminary Economic Assessment for the Chinchillas Silver Project, with $226M After-tax NPV and 24.3% IRR
(via Thenewswire.ca) Vancouver, BC / TNW-ACCESSWIRE / October ...
About this update from Golden Arrow Resources Corp.
[{"type":"text","content":"Golden Arrow Announces Updated Preliminary Economic Assessment for the Chinchillas Silver Project, with $226M After-tax NPV and 24.3% IRR(via Thenewswire.ca)\n \n \nVancouver, BC / TNW-ACCESSWIRE / October 30, 2014 / Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), \"Golden Arrow\" or the \"Company\") is pleased to announce the results of an updated Preliminary Economic Assessment (\"PEA\") for the Chinchillas silver-lead-zinc project in Jujuy Province, Argentina (\"Chinchillas\" or \"the Project\"). The new PEA has more than doubled the after-tax net present value (\"NPV\") of the project to US$226 million. The update is based on the expanded resource estimate announced August 29th 2014. \n\n \n \nHighlights \n\n\n \nAll values are quoted in US dollars, using base case metal prices of $22 per ounce of silver, $1.00 per pound of lead, $1.00 per pound of zinc.\n\n\n \n\n\n-A processing rate of 2.9 million tonnes per year (8,000 tonnes per day) and open-pit mining scenario, at a 2.4:1 strip ratio, and 12 year mine life\n\n\n\n-After-tax net present value of $226 million at an 8% discount rate \n\n\n\n-Internal rate of return (\"IRR\") of 24.3%\n\n\n\n-Payback period of 3.4 years\n\n\n\n-Pre-production capital costs of $237 million, including a 20% contingency\n\n\n\n-Cash operating costs of $9.22 per ounce of silver, without lead and zinc credits\n\n\n\n-Average annual silver production of 8 million ounces\n\n\n\n \n \n\"We are very pleased with this economic assessment as it provides an even stronger demonstration of the potential of Chinchillas as a viable mining project,\" stated Brian McEwen, VP Exploration and Development. \"We are now looking forward to moving into a feasibility assessment in 2015, while continuing to explore the property and expand resources.\" \n\n \n \nThe project demonstrates positive economics at a range of silver price scenarios:\n\n \n\nSilver Price Per Ounce \n\n\n\n$US\n\n\n\n(Lead and Zinc at US$1.00)\n\n\n\n\nAfter-tax NPV8%\n\n\n\n(millions)\n\n\n\n\nAfter-tax IRR\n\n\n\n\nAfter-tax \n\n\n\nPayback Period\n\n\n\n(years)\n\n\n\n\n$17.00\n\n\n\n\n$ 90.2\n\n\n\n\n14.9%\n\n\n\n\n5.2\n\n\n\n\n$22.00\n\n\n\n\n$ 225.5\n\n\n\n\n24.3%\n\n\n\n\n3.4\n\n\n\n\n$25.00\n\n\n\n\n$ 305.0\n\n\n\n\n29.2%\n\n\n\n\n2.6\n\n\n \n \nManagement plans to advance the Chinchillas project to a feasibil...