Timmins Gold Updates PEA for Ana Paula Project

Timmins Gold Corp. (TSX:TMM,NYSEMKT:TGD) released the results of an updated preliminary economic assessment (PEA) for its Mexico-based Ana Paula project.
The new PEA replaces the original October 2014 version, and incorporates Timmins’ recently acquired El Sauzal process plant and infrastructure into capital estimates.
PEA highlights include:

• Base Case at $1,200 Au & $14 Ag per ounce (updated)
• Pre-tax NPV@5% of $408 million, IRR of 59% with a 1.6 year payback (updated)
• After-tax NPV@5% of $248 million, IRR of 43% with a 2.1 year payback (updated)
• Initial capital costs of $121.7 million (includes contingency costs of $19.8 million) (updated)
• Open pit mine with 6,000 tonne per day (“tpd”) gravity/flotation/CIL process plant (same as 2014 PEA)
• Cash costs of $470/ oz gold, $442/oz gold Net of By-Product credits (updated)
• All-in sustaining costs (“AISC”) of $507/oz gold, $479/oz gold Net of By-Product credits (updated)
• Average annual production of 116,000 gold ounces and 239,000 silver ounces over a 8.2 year mine life (same as 2014 PEA)
• LOM average head grades of 2.24 g/t gold and 6.89 g/t silver (same as 2014 PEA)
• LOM gold and silver recoveries of 75% and 50%, respectively (same as 2014 PEA)
• LOM strip ratio of 2.60 to 1 of waste to mineralized material (same as 2014 PEA)

Mark Backens, interim CEO of Timmins, commented:

This PEA update quantifies the economic benefits of the El Sauzal facilities acquisition on the already-robust Ana Paula Project. We continue to view Ana Paula as one of the best development-stage gold projects in Mexico. Total initial capital estimate has been reduced by approximately $42 million. It is also important to note that because we have already acquired essentially all of the equipment and materials the risk of capex overruns and delivery delays has been significantly lowered.

Click here to read the full Timmins Gold Corp. (TSX:TMM,NYSEMKT:TGD) press release.