Almaden Updates PEA for 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.