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Hochschild Provides Update on Volcan Gold Project
Hochschild Provides Update on Volcan Gold Project.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n\n \n \n \n \n \n_____________________________________________________________________________________\n14 August 2023\n \nHochschild Provides Update on Volcan Gold Project\n \nHochschild Mining PLC (the \"Company\" or \"Hochschild\") (LSE: HOC) (OTCQX: HCHDF) today provides an update on its 100%-owned Volcan Gold Project (\"Volcan\" or the \"Project\") located in the Maricunga Region of Chile. Hochschild acquired the Volcan Project through its acquisition of Andina Minerals in 2012. The Project was dormant for many years until early 2022 when work was initiated to re-evaluate the Project scope and economics in the current gold price environment.\n \nNote: All currency figures are in US Dollars unless otherwise noted.\n \nDuring the last 18 months, a number of key milestones have been achieved:\n \nProject highlights\n\n\n\n\n§\n\n\nCreated a new Canadian Company, Tiernan Gold Corp (\"Tiernan\"), as a subsidiary of Hochschild Mine Holdings UK\n\n\n\n\n§\n\n\nRestructured the Project to be owned by Tiernan\n\n\n\n\n§\n\n\nCompleted an updated Mineral Resource Estimate[1] to Canadian NI 43-101 standards, which outlined:\no 463.3 Mt of Measured and Indicated Resources at 0.66 g/t gold for 9.8 million ounces of gold contained\no 75.0 Mt of Inferred Resources at 0.516 g/t gold for and additional 1.2 million ounces of gold contained.\n\n\n\n\n§\n\n\nCompleted a positive Preliminary Economic Assessment[2] to Canadian NI 43-101 standards, which highlighted:\no 22mtpa open-pit, heap leach operation with a 14 year mine life\no Average of 332,000 ounces per year of gold production for first 10 years of operations with 3.8 million ounces produced over the estimated mine life\no Initial capital cost of $900 million, with life of mine sustaining capital an additional $276 million\no Cash costs[3] of $921/oz and All-in-Sustaining-Costs[4] of $1,002/oz, life-of-mine\no NPV (5%) = $826 million and IRR = 21% at $1,800/oz gold price, after-tax\n\n\n\n\n§\n\n\nExecuted an agreement for a $15 million financing with the sale of a new 1.5% NSR royalty on the Project to Franco-Nevada\n\n\n\n\n§\n\n\nEngaged Canaccord Genuity to evaluate strategic alternatives for Tiernan\n\n\n\n\n \nIgnacio Bustamante, Chief Executive Officer, said:\n\"There has...