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Spanish Mountain Gold Reports Results of Pre-Feasibility Study Along with Mineral Reserve Estimate & Updated Mineral Resource Estimate
Vancouver, British Columbia--(Newsfile Corp. - May 11, 2021) - Spanish Mountain Gold Ltd. (T...
About this update from Spanish Mountain Gold Ltd.
[{"type":"text","content":"Spanish Mountain Gold Reports Results of Pre-Feasibility Study Along with Mineral Reserve Estimate & Updated Mineral Resource EstimateVancouver, British Columbia--(Newsfile Corp. - May 11, 2021) - Spanish Mountain Gold Ltd. (TSXV: SPA) (the \"Company\") is pleased to announce the positive results of the Pre-Feasibility Study (the \"PFS\") for the 100% owned Spanish Mountain gold project (the \"Project\") located in central British Columbia, Canada. The PFS, which is prepared in accordance with NI 43-101 Standards of Disclosure for Mineral Projects, delineates a Mineral Reserve within the near-surface/ higher-grade portion of the Mineral Resource. All dollars figures are in Canadian (CAD) unless otherwise noted. In accordance with industry practice, certain key economic metrics are stated in USD to facilitate comparison with projects/ mines globally. The highlights of the PFS results are as follows:Proven & Probable Mineral Reserves of 2.3 million ounces (Moz) of gold and 2.2 Moz of silver. Details of the tonnages and grades are presented under \"Mineral Reserves\" below.Measured & Indicated (M&I) Mineral Resources of 4.7 Moz of gold and 6.8 Moz of silver, an increase of 0.6 Moz of gold from previous estimates due to optimization and an increased gold price assumption. Details for the tonnages and grades for Mineral Resources are presented under \"Mineral Resources\" below. (As previously reported, this increase in Mineral Resources does not yet reflect the drilling results from the 2020 winter program due to industry-wide delays at assaying laboratories. These results will be incorporated in a future resource update.)Life of mine (LOM) production of 2.1 Moz of gold and 0.9 Moz of silver over 14 yearsAverage annual gold production: 183,000 oz (first 6 years) and 150,000 oz (LOM) with peak production of 210,000 oz in year 6Average all-in-sustaining cost (AISC) of production: US$707 per oz (first 6 years) and US$801 per oz (LOM)Pre-tax project economics: NPV(5%) of $848M, IRR of 25% and payback of construction capital in 3.2 years @ US$1,600 gold (\"Base Case\"); NPV(5%) of $1,209M, IRR of 31% and payback in 2.7 years @ US$1,800 goldPost-tax project economics: NPV(5%) of $655M, IRR of 22% and payback of construction capital in 3.3 years @ US$1,600 gold; NPV(5%) of $888M, IRR of 27% and payback in 2.8 years @ US$1,800 go...