Avala Resources Reports Positive PEA Results, Updated Mineral Resource for Timok Project

Avala Resources Ltd. (TSXV:AVZ) reported the results of an independent preliminary economic assessment and an updated mineral resource estimate for its wholly owned Timok Gold Project in Eastern Serbia.

As quoted in the press release, highlights from the PEA included:

• Open pit gold mine with an initial life of mine (“LOM”) of 8.4 years.
• Average annual gold production LOM of approximately 81,000 ounces at US$788 cash cost per ounce.
• Average annual gold production of approximately 92,000 ounces for the first three years of production.
• LOM gold production of 680,000 ounces.
• Average LOM operating costs (including royalties, selling costs, closure/environmental costs and sustaining capital)
of U$843 per ounce of gold.
• Annual processing rate of 1.68 million tonnes per year.
• Average LOM gold recovery of 75% from milling and flotation to produce a gold-rich concentrate.
• Estimated pre-production capital cost of US$177 million, including working capital.
• LOM net cash flow of US$127.6 million at a gold price of US$1300 per ounce.
• Net present value (“NPV”) of US$65 million at a 5% discount rate and a gold price of US$1300 per ounce
generating an internal rate of return (“IRR”) of 14.3%.
• Project payback of 4.0 years.
• All economic outcomes presented in the PEA are the same on a pre- and after-tax basis as it is expected that the
proposed level of investment and employment associated with the implementation of the proposed mine would
qualify for a 10 year tax holiday under current Serbian tax legislation.
• Over 99.5% of the resources within the PEA pit designs are categorized as indicated resources.

Click here to read the Avala Resources Ltd. (TSXV:AVZ) press release