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Almaden Minerals (TSX:AMM) has released an updated preliminary economic assessment for its Ixtaca gold-silver deposit in Mexico. The report indicates significant capital savings due to the use of the company’s recently purchased Rock Creek Mill.
Almaden Minerals (TSX:AMM) has released an updated preliminary economic assessment for its Ixtaca gold-silver deposit in Mexico. The report indicates significant capital savings due to the use of the company’s recently purchased Rock Creek Mill.
The report used base case prices of US$1,150 per ounce of gold and US$16 per ounce of silver
As quoted in the press release, highlights included:
- Initial Capital is $100.2 million;
- After-tax payback of initial capital in 2.6 years.
- Pre-tax NPV(5%) of $266 million and internal rate of return of 39%;
- After-tax (including new Mexican Mining Duties) NPV(5%) of $166 million and internal rate of return of 30%;
- 36 million tonnes of mill feed averaging 0.76 g/t gold and 47 g/t silver (average head grade of 1.42 g/t gold equivalent using a 72:1 silver to gold ratio)
- Total LOM production of 724,000 ounces of gold and 49 million ounces of silver (1.4 million gold equivalent ounces, or 101 million silver-equivalent ounces at a 72:1 silver to gold ratio);
- Operating cost $684 per gold equivalent ounce, or $9.50 per silver equivalent ounce
- 97% of the PEA Update mill feed is in the Measured and Indicated categories of the resource model.
Almaden chairman, JD Poliquin, said:
This PEA update shows material improvements to the potential economic viability of the Ixtaca project realised through the recently-optioned Rock Creek Mill. At the same time a new mine plan is presented that optimises the mine plan for the lower metal price environment we find ourselves in by focussing on the near surface, quicker payback material. We now continue working on a PFS to further de-risk the project and initiate the permitting process.