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Maritime's Prefeasibility Study on the Hammerdown Gold Mine Returns an IRR of 46.8% and NPV (8%) of $71.2M
Vancouver, British Columbia--(Newsfile Corp. - March 2, 2017) - Maritime Resources Corp. (TSX...
About this update from New Found Gold Corp
[{"type":"text","content":"\nMaritime's Prefeasibility Study on the Hammerdown Gold Mine Returns an IRR of 46.8% and NPV (8%) of $71.2MVancouver, British Columbia--(Newsfile Corp. - March 2, 2017) - Maritime Resources Corp. (TSXV: MAE) (\"Maritime\") is pleased to announce that they have completed the Prefeasibility Engineering Study and Economic Assessment (\"PFS\" or \"Study\") aimed to reopen the past producing Hammerdown gold project in Newfoundland and Labrador, Canada.The PFS was evaluated on the Measured & Indicated NI43-101 mineral resource estimate for the past producing Hammerdown gold deposit. The study was completed by WSP Canada Inc. (\"WSP\"), an independent third party engineering firm, with the mandate to evaluate the potential of bringing the past producing gold mine back into commercial production. The Study was successful in demonstrating a viable mining operation with low upfront capital and short time line to the start of gold production. The engineering design optimizes a small foot print within the historical mine area as well as utilizing some of the existing underground infrastructure where possible. The operation is schedule to run at a capacity of approximately 400 metric tons per day ('mtpd') over a five-year mine life.The results show positive economics, strong internal rate of return, short payback period and significant cash flow under reasonable commodity price assumptions. The pre-tax operating cash cost to produce an ounce of gold is $558 CDN with an all in pre-tax-cost (including capital, sustaining capital and operating cost) of $955 CDN per ounce of gold. In addition, there remain numerous opportunities for improvement to reduce the planned development and capital costs. Maritime will continue to evaluate these opportunities with a goal to fully optimize the returns from the mining operation.PRE-FEASIBILY STUDY ('PFS') HIGHLIGHTS(All currency is expressed in Canadian dollars ($CA) unless otherwise noted.)Project Pre-tax net present value ('NPV8%') of $71.2 million with an IRR of 46.8% per cent.Project after-tax net present value ('NPV8%') of $44.2 million with an internal rate of return ('IRR') of 34.8%Net pre-tax cash flow of $104 million, undiscounted. Net after-tax cash flow of $69 million, undiscounted.Total Development and Capital Cost Estimate for the five-year life of mine of $67.8 million, Mine Development ...