Business
51% IRR from PEA at TriStar Gold’s Castelo de Sonhos Project
SCOTTSDALE, Ariz., Nov. 16, 2018 (GLOBE NEWSWIRE) -- On behalf of TriStar Gold Inc. (the “Company” or “TriStar”), GE21 Consultoria Mineral Ltda (“GE21”) of Belo
About this update from Tristar Gold Inc.
[{"type":"text","content":" SCOTTSDALE, Ariz., Nov. 16, 2018 (GLOBE NEWSWIRE) -- On behalf of TriStar Gold Inc. (the “Company” or “TriStar”), GE21 Consultoria Mineral Ltda (“GE21”) of Belo Horizonte, Brazil, has completed the Preliminary Economic Assessment (“PEA”) for the Company’s Castelo de Sonhos gold project in southern Pará State, Brazil. Key highlights of the PEA include the following: Life-of-mine recoverable gold of 1.1 million ounces (“Moz”) Internal rate of return pre-tax of 51% Cash cost of $660 All in sustaining cost (“AISC”) of $687 Nick Appleyard, TriStar’s President and CEO stated: “This study now shows a robust, low cost base case for the Castelo de Sonhos gold project. With payback in less than two years and an average production of nearly 160,000 ounces per year for the first four years, the remarkable potential of this project is coming into focus. We intend to complete further drilling in 2019 with an aim to further increase the mineral resource estimate”. Table 1. Key economic parameters from the PEA for the Castelo de Sonhos gold project. 1 Parameter Unit Pre-tax Post-tax Cash flow US$ millions 441 372 IRR % 51 43 NPV 5% US$ millions 319 264 NPV 10% US$ millions 233 188 Cash Cost US$/oz 660 AISC2 US$/oz 687 Initial Capital US$ millions 184 Life of mine production Moz gold 1.1 Average annual production oz gold 120,000 Payback period (Mine life) Years 1.9 (of 9.1 years) 1 Numbers have been rounded to reflect the precision of a preliminary analysis. 2 The Company calculates all-in sustaining costs as the sum of total cash costs, sustaining capital expense and corporate general and administrative expense (net of stock option expense). 3 TriStar intends to file an independent NI 43-101 Technical report to SEDAR within 45 days in support of this disclosure. Table 2. Technical assumptions for the PEA Parameter Unit value Process rate t/day 8,250 Average head grade g/t 1.44 Gold Recovery % 95 Mine operating cost US$/t moved 2.17 Process operating cost and G&A US$/t processed 10.68 LOM strip ratio Waste t : process t 8 : 1 Gold price US$/oz 1,250 Exchange rate Brazilian Real/US$ 3.8 The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them...