Golden Dawn Minerals Releases PEA for Greenwood Gold Project

Golden Dawn Minerals Inc. (TSXV:GOM) released the results of a preliminary economic assessment( PEA) for its British Columbia-based Greenwood gold project. The company has an option under which it can acquire the project from Huakan International Mining Inc. (OTCMKTS:MRMZC).
As quoted in the press release:

The PEA indicates a very positive, rapid pay-back, 5-year underground mining project at near current gold prices.  The PEA was prepared by P&E Mining Consultants Inc.(“P&E”) under the direction of Eugene Puritch, P.Eng. with contributions from Frank Wright, P.Eng.  At a gold-price of US $1,250/oz and copper price of US $3.00 per pound using an exchange rate of C $1.00 equal US $0.82, the project generates a pre-tax net present value (NPV) of C $32.5 million at a 6% discount rate, and yields an Internal Rate of Return (IRR) of 72.6%.  The mines are projected to produce 104,000 gold equivalent ounces over five years at an all-in life of mine sustaining cash cost of US $820 per ounce of gold.
The PEA envisages an owner-operated,  5-year underground mine project encompassing two deposits: the Lexington-Grenoble containing 356,000 tonnes of mill feed at an average diluted grade of 5.48 grams/tonne gold (g/t Au) and 0.90% (Cu),  and  the Golden Crown with  191,000 tonnes at an average diluted grade of 8.67 g/t Au and 0.48% Cu.  The PEA study incorporates expanding the existing 200 tonnes per day (tpd) mill to 400 tpd after the first year of operation.  Annual gold production is projected to be 27,000 gold equivalent ounces at the expanded 400 tpd rate.

Click here to read the full Golden Dawn Minerals Inc. (TSXV:GOM) press release.