Avnel Gold Releases Definitive Feasibility Study for Kalana Main

Avnel Gold Mining Ltd. (TSX:AVK) released the results of a definitive feasibility study for its Mali-based Kalana Main project.
The feasibility study uses a mineral reserve estimate of 1.96 million ounces of gold and a measured and indicated resource estimate of 3.06 million ounces of gold. Furthermore, the study is based on 100-percent ownership of Kalana Main.
Highlights include:

Project Economics (base case gold price of $1,200 per ounce)

• After tax 8% NPV: $196 million
• After tax IRR: 38%
• Payback period: 1.2 years from start of commercial production

Mine Production

1. During first 5 years:

• Average annual production of 148,000 ounces at a total cash cost of $507/oz and an average on-site all-in-sustaining cost (“AISC”) of $595/oz
• Average mill head grade of 3.6 g/t Au with gold recovery of 94.6%
• Average annual throughput of 1.35 million tonnes milled

2. Over 18 year life of mine (“LOM”):

• Total production of 1.82 million ounces with gold recovery of 92.7%
• Average annual production of 101,000 ounces at a total cash cost of $695/oz and an on-site AISC of $784/oz

Click here to read the full Avnel Gold Mining Ltd. (TSX:AVK) press release.