Romarco Minerals (TSX:R) announced Wednesday that it has filed an updated technical report for its Haile gold project.
Romarco Minerals (TSX:R) announced Wednesday that it has filed an updated technical report for its Haile gold project. Mineral resources and mineral reserves remain unchanged, but the report updates economics outlined in a previous feasibility study.
As quoted in the press release:
- Gold price increased from $950/oz to $1,250/oz.
- After-tax NPV at a 5% discount rate increased from $191 million to $329 million.
- After-tax IRR increased from 15.7% to 20.1%.
- Capital costs are now projected to be $333 million (including $17 million for contingency), of which approximately $31 million has already been paid. The increase in capital is primarily due to bringing forward some work that was previously projected to be sustaining capital, increased insurance amounts, refinements in the detailed engineering (which is now 85% complete), additional capital affiliated with permit requirements and increases in materials costs.
- Compared to capital costs of $275 million in the prior Technical Report (including $30 million for contingency), and the Company’s subsequently updated estimate of $320 million (including $30 million for contingency and $17 million for inflation).
- Sustaining capital is currently projected to be $139 million versus $119 million in the Feasibility Study. The bulk of the sustaining capital costs are for earthworks associated with tailings and overburden stockpile construction in respect of which unit rates for material moved have increased.
- Updated operating costs are $23.79/ton of ore processed and $476.94/oz produced (including refining costs and net of silver by-product credit). These costs represent a 26% increase from the Feasibility Study due to increased costs for labor and consumables and an increase in power (initial rate of $0.05/kWhr).