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Tarachi Gold Announces Positive Results of Magistral PEA and Mineral Resource Estimate
Press Release Highlights: Projected average annual gold production of 16,000oz + copper concentrate Cash operating costs of $648/oz and AISC of $705/oz Au, net
About this update from Tarachi Gold Corp.
[{"type":"text","content":" Press Release Highlights: Projected average annual gold production of 16,000oz + copper concentrate Cash operating costs of $648/oz and AISC of $705/oz Au, net of copper and silver by-product credit. Pre-tax IRR of 120% and post-tax IRR of 85% at $1600/oz Au. Pre-tax annual free cash flow of $15.3M USD ($19.3M CAD) in peak years VANCOUVER, BC, Dec. 13, 2021 /CNW/ - Tarachi Gold Corp. (CSE: TRG) (OTCQB: TRGGF) (Frankfurt: 4RZ) (\"Tarachi\" or the \"Company\") is pleased to announce the results of the Preliminary Economic Assessment (\"PEA\") for the Company's Magistral Mill and Tailings Project (\"Magistral\" or the \"Magistral Project\") in Durango, Mexico. Preliminary Economic Assessment Metrics: Initial capital costs of $11.1M USD and after-tax payback in 1.0 years Development timeline of 12 months Cash operating costs of $648/oz and AISC of $705/oz Au, net of copper and silver credits Pre-tax IRR of 120% and after-tax IRR of 85% at base case prices of $1600/oz gold, $22/oz silver, and $3.40/lb copper Pre-tax annual free cash flow of $15.3M USD ($19.3M CAD) and post-tax cash flow of $11.3M USD ($14.3M CAD) during years of full-rate production LOM of 3.4 years with total production of 53,900oz Au, 75,800oz Ag and 1.9Mlbs Cu The PEA was completed by Ausenco Engineering Canada Inc. (Ausenco) and provides an attractive preliminary economic case for the development of the Magistral Project. The PEA is based upon an updated Mineral Resource Estimate, also included in the PEA report, completed by AGP Mining Consultants Inc. (AGP) of Canada. The report outlines a potential low capex, low operating cost, and low environmental impact tailings reprocessing operation that can be brought into production in a 12-month time frame. The current mine plan incorporates approximately 89% of the Measured and Indicated resources, however management believes additional tonnage may be scavenged from the remaining tailings to provide additional mine life. The Company is also looking to acquire other local tailings materials that could potentially be processed at the Magistral facility and ultimately extend the cash generating life of the asset. Cameron Tymstra, President and CEO, commented, \"We are incredibly pleased with the results of the Magistral PEA. This report confirms our previous expectations for this project in that it has the potenti...