Canamex Gold Announces Positive Results on Updated PEA on the Bruner Gold Project

Canamex Gold Corp. (TSXV:CSQ) announced positive results of the updated preliminary economic assessment (“PEA”) on the Bruner gold development project, located in Nye County, Nevada.
Highlights are as follows:

• After-tax net present value at 5% discount rate (NPV5) US$69.6 million (C$88.4 million) or $C 1.44 per share (based on 61,365,676 shares currently on issue).
• The updated PEA adds 93,000 ounces of indicated resources of gold and 826,000 ounces of indicated resources of silver to the resources referenced in the 2016 PEA.
• Low pay-back period of nominally 1.65 years at $US 1,280/oz. gold.
• Attractive after-tax IRR of 31% at $US 1280/oz gold price and 51.5% at $US 1,500/oz gold.
• Average annual production of 42,500 oz gold, and 44,250 oz silver.
• 10-year operation, including a 2-year tail of gold and silver recovery after mining.
• Average annual cash cost of $US 577/oz. for the first two years and $US 872/oz. thereafter for an average cash cost of $US 796/oz.
• Low initial capital expenditures of US$37.81 million, including contingency of US$4.8 million, not including US$6.8 million of working capital.
• Contract mining with room for significant improvement on mining costs with owner operated equipment and detailed scheduling of mining costs between the three proposed pits.
• Facility siting and first two years of production entirely on patented claims to allow for a streamlined permitting process for the Phase 1 production scenario.
• Oxide heap leach processing with 90% recovery of gold on single stage crushed material and 75% recovery of gold on run of mine (ROM) material.
• The reported NI43-101 resources remain open in multiple directions and are amenable to expansion with additional drilling.

Greg Hahn, president and CEO, commented:

Completion of this updated PEA significantly advances the Bruner Gold Project. This updated PEA extends the life of the conceptual mine life from six to eight years and adds 93,000 ounces of indicated resources of gold and 826,000 ounces of indicated resources of silver to the resources referenced in the previous 2016 PEA. It also tightens the capital and operating cost estimates by reference to recently experienced actual costs on another gold development project in Nevada.
I believe we will be able to move the Bruner Gold Project forward into permitting and development on the strength of this positive PEA. The project includes the fundamental elements we consider important to investors when building a mine, including low capital and operating costs, and an attractive rate of return in the current price environment. We can now move ahead with permitting and engineering the project for development.

Click here to read the full Canamex Gold Corp. (TSXV:CSQ) press release.