The Conversation (0)
Pilot Gold (TSX:PLG) reported the results from its Preliminary Economic Assessment for the Halilaga copper-gold porphyry project in northwestern Turkey. The company owns a a 40% interest in Halilaga, alongside a Turkish subsidiary of Teck Resources, Teck Madencilik Sanayi Ticaret A.S., which owns the remaining 60% of the joint venture.
Pilot Gold (TSX:PLG) reported the results from its Preliminary Economic Assessment for the Halilaga copper-gold porphyry project in northwestern Turkey. The company owns a a 40% interest in Halilaga, alongside a Turkish subsidiary of Teck Resources, Teck Madencilik Sanayi Ticaret A.S., which owns the remaining 60% of the joint venture.
PEA highlights include:
- Pre-tax NPV7% of $675 million, 26% IRR and 2.1 year payback ($1,200/oz gold, $2.90/lb copper);
- After-tax NPV7% of $474 million, 20% IRR and 2.7 year payback ($1,200/oz gold, $2.90/lb copper);
- Average life of mine (“LOM”) strip ratio of 1:1;
- LOM payable production of 1.290 million ounces gold and 1.247 billion pounds copper;
- Total project capital costs of $1.17 billion (including contingency of $200 million), with potential to reduce initial capital costs through contract mining or equipment leasing and project optimization through more advanced studies.
Pilot Gold President and CEO Matt Lennox-King stated:
The combination of higher grades that are mineable in the first three years, combined with Halilaga’s favourable infrastructure and location in a jurisdiction that is open to mine development, makes this a compelling development project. The PEA confirms our view that Halilaga has the potential to be a straightforward open pit mine, utilizing conventional milling and flotation concentration with robust economics. While TV Tower and Kinsley continue to be our focus projects, the robust economics of Halilaga will provide Pilot Gold and our partner with a number of strategic options in the future.
Click here to view the full press release.
