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Maritime Delivers Robust Economics for Updated Hammerdown Project Resource: After-Tax NPV5% of $111.3M, IRR 50.5% and 1.5 Year Payback
Toronto, Ontario--(Newsfile Corp. - February 29, 2020) - Maritime Resources (TSXV: MAE) ("Ma...
About this update from New Found Gold Corp
[{"type":"text","content":"Maritime Delivers Robust Economics for Updated Hammerdown Project Resource: After-Tax NPV5% of $111.3M, IRR 50.5% and 1.5 Year PaybackToronto, Ontario--(Newsfile Corp. - February 29, 2020) - Maritime Resources (TSXV: MAE) (\"Maritime\" or the \"Company\") is pleased to announce results from a Preliminary Economic Assessment (\"PEA\") completed for the Hammerdown gold project (\"Hammerdown\", or the \"Project\"), including the satellite Orion deposit, located in the Baie Verte mining district of Newfoundland and Labrador near the towns of King's Point and Springdale. The PEA was prepared in accordance with Canadian Securities Administrators' National Instrument 43-101 Standards of Disclosure for Mineral Projects (\"NI 43-101\"). The PEA provides an updated resource estimate and a base case assessment of developing the Project as a combined open pit and underground ramp-access mine (the \"Combined Project\")with an on-site gold pre-concentration plant and mineral processing through the Nugget Pond mill gold circuit. The PEA replaces the April 2017 Pre-feasibility Technical Report that was filed on SEDAR which is no longer current. A current PEA Technical Report will be filed on SEDAR under the Company's profile within 45 days of the date of this news release. All financial figures are presented in Canadian dollars (C$) unless otherwise noted.Hammerdown PEA Highlights and life-of-mine plan (\"LOM\") include*:• After-tax NPV5% of $111.3M and 50.5% IRR (pre-tax NPV5% $191.8M and 75.4% IRR) at base case gold price of US$1,375/oz Au • At US$1,500/oz gold the Project returns after-tax NPV5% of $154.1M and 65.1% IRR (pre-tax NPV5% $261.7M and 95.6% IRR)• LOM total gold production of 521,500 oz, averaging 57,900 oz annually• Average annual gold production of 69,500 oz in the first 5 years• LOM cash costs of US$802.55/oz Au and LOM All-in sustaining costs (\"AISC\") of US$938.80/oz Au • Pre-production capital expenditures of $57.2M• After-tax payback period of 1.5 years with base case pricing The foregoing PEA highlights are based on the following:1. Exchange Rate (US$/C$) of $0.752. Cash costs are inclusive of mining costs, processing costs, on-site general and administrative (\"G&A\") costs, treatment and refining charges and royalties3. AISC includes cash costs plus estimated cor...