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Goldgroup Announces Completion of PEA on Caballo Blanco Indicating Robust Project Economics of 66% Pre-Tax IRR and US$284 million Pre-Tax NPV and Provides Corporate Update
VANCOUVER, April 12, 2012 /CNW/ - Goldgroup Mining Inc. ("Goldgroup" or the "Company") (TSX...
About this update from Goldgroup Mining Inc.
[{"type":"text","content":"\n\n\n\n\n\nVANCOUVER, April 12, 2012 /CNW/ - Goldgroup Mining Inc. (\"Goldgroup\" or\n the \"Company\") (TSX:GGA) is pleased to announce initial positive\n results from a Preliminary Economic Assessment (\"PEA\") for the\n Company's 100%-owned Caballo Blanco gold project located in the State\n of Veracruz, Mexico.  Based on the PEA, the Caballo Blanco project is\n expected to generate a 66.4% pre-tax internal rate of return (\"IRR\")\n and a US$283.8 million pre-tax net present value (\"NPV\") at a 5%\n discount rate, over an approximate 7.5-year mine life and produce\n 687,000 ounces of gold and 1.3 million ounces of silver, based on the\n current mineable resource determined from the Whittle optimization\n model. A technical report entitled \"Minera Cardel Resource Corp. - Caballo Blanco Gold Heap Leach\n Preliminary Economic Assessment\" will be completed within 45 days and will be filed on SEDAR and the\n Company's website.\n\n\n\n\n\nPEA Highlights\n\n\nIndicated mineral resources of 575,000 ounces of gold (28.9 million\n tonnes grading 0.62 g/t Au) and inferred mineral resources of 419,000\n ounces of gold (24.0 million tonnes grading 0.54 g/t Au)\n\n\nThe Whittle optimization model shell contains 49.3 million tonnes of\n mineralized material above the Net Smelter Return (\"NSR\") cut-off of\n $3.04/t and 852,000 ounces of contained gold and 3.6 million ounces of\n contained silver. The NSR parameters utilized in the optimization model\n were $1,150 per ounce for gold and $21.50 per ounce for silver. The\n initial strip ratio is 0.5 and 1.3 in years one and two respectively,\n and an overall strip ratio of 1.66 for the Life-of-Mine (\"LOM\")\n\n\nOverall anticipated metallurgical gold recovery of 80.7% based on\n current metallurgical testing\n\n\nAt full production of 20,000 tonnes per day, expects annual production\n of 95,000 ounces of gold for years two to seven, for a total production\n of 687,000 ounces of gold and 1.3 million ounces of silver for the\n expected LOM of 7.5 years\n\n\nTotal cash operating cost of US$784 per ounce of gold\n\n\nAnticipate pre-production period of approximately one year\n\n\nInitial capital costs estimated at US$84.8 million, plus additional\n US$53.5 million of sustaining capital costs over the LOM\n\n\nUn-leveraged pre-tax IRR of 66.4% and a NPV of US$283.8 million at a\n base ca...