Silver

Almaden Updates PEA for Ixtaca Gold-Silver Deposit

Company News

Almaden Minerals Ltd. (TSX:AMM,NYSEMKT:AAU) released an updated NI 43-101 compliant preliminary economic assessment (PEA) update for its Mexico-based Ixtaca gold-silver deposit.

Almaden Minerals Ltd. (TSX:AMM,NYSEMKT:AAU) released an updated NI 43-101 compliant preliminary economic assessment (PEA) update for its Mexico-based Ixtaca gold-silver deposit.

As quoted in the press release:

The conclusions and recommendations of the maiden PEA were that the Ixtaca deposit may be economically viable and the Company should proceed to a Pre-Feasibility study (‘PFS’). Since that time work has commenced towards a PFS. The PEA Update (30,000 tonnes per day base case scenario) significantly reduces initial capital. Initial capital is further reduced with an alternative ‘ramp-up’ case that starts with a smaller 7,000 tonnes per day mill and ramps up to 30,000 tonnes per day by Year 6.

Highlights of the PEA update include:

  • Base Case Improvements:
    • Initial Capital is reduced by 19% to $399 Million;
    • Economic Results :
      • Pre-tax Net Present Value (‘NPV’) of $842 Million at a 5% discount rate and internal rate of return of 37%;
      • After-tax (including new Mexican Mining Duties) NPV(5%) of $515 Million and internal rate of return of 28%;
      • After-tax payback of Initial Capital in 2.5 years.
  • Ramp-Up Case:
    • Initial Capital is a 40% reduction of the Base Case to $244 Million;
    • Initial production rate of 7,000 tonnes per day expanding to 30,000 tonnes per day in year 6;
    • After-tax payback of initial capital in 4.5 years and after-tax payback of expansion capital in 0.4 years.
    • Expansion is financed internally from cash flows in years 4 and 5;
    • Pre-tax NPV(5%) of $699 Million and internal rate of return of 29%;
    • After-tax (including new Mexican Mining Duties) NPV(5%) of $427 Million and internal rate of return of 23%

Click here to read the full Almaden Minerals Ltd. (TSX:AMM,NYSEMKT:AAU) press release.

MARKETS

Markets
TSX20751.05-16.33
TSXV629.83+3.66
DOW34092.96+6.92
S&P 5004119.210.00
NASD11816.32+231.77
ASX7501.70+25.00

COMMODITIES

Commodities
Gold1946.01-6.31
Silver24.36+0.32
Copper4.16+0.05
Palladium1713.170.00
Platinum1087.260.00
Oil76.13-0.28
Heating Oil2.93-0.02
Natural Gas2.52+0.05

DOWNLOAD FREE REPORTS

×