Rockhaven Resources Releases PEA For Klaza Gold-Silver Property

Rockhaven Resources (TSXV:RK) has released the results of a preliminary economic assessment for its wholly owned Klaza property in Southern Yukon. Highlights of results included a pre-tax net present value of $150 million at a 5 percent discount with a pre-tax internal rate of return of 20 percent, and a post-tax net present value at a 5 percent discount rate of 86 million and a post-tax internal rate of return of 14 percent.
As quoted in the press release:

Highlights from the PEA, with the base case gold price of US$1200/oz and an exchange rate of C$1.00 equal to US$0.75 are as follows (all figures in Canadian Dollars unless otherwise stated):

• Combination of contractor open pit and owner-operated longhole open stoping underground mining;
• NPV(5%) of $150 million and an IRR of 20% before tax, and an NPV(5%) of $86 million and an IRR of 14% after tax;
• 14-year mine life producing total payable metals of approximately 630,000 oz gold, 11,364,000 oz silver, 51,229,000 lbs lead and 52,461,000 lbs zinc;
• Project capital costs of $262 million, which includes $34 million in contingency costs. Life-of-mine (“LOM”) sustaining capital costs total $96 million;
• Centrally located flotation-POX-leach process plant, operating year round at a rate of 1,500 tonnes per day (“tpd”);
• Average mill feed grade of 3.33 g/t Au, 77 g/t Ag, 0.70% lead and 0.80% zinc which equates to a 4.02 g/t AuEQ^*;
• Average LOM operating cash cost of US$652/oz AuEQ^* and total all-in sustaining cost of US$966/oz AuEQ^*; and,
• The project benefits from the well-developed infrastructure in the area including existing road access and proximity to an established community.

^*Gold equivalent values for mining purposes assume base case metal prices and recoveries used in the PEA and are calculated using the following formula: AuEQ=1*Au+Ag/106.5+Pb/7.83+Zn/14.45

Rockhaven CEO, Matt Turner, said:

The receipt of a positive PEA demonstrating strong economics over a long mine-life is a major milestone for Rockhaven. We see numerous opportunities to further enhance the economics through additional studies and exploration with a high probability for resource expansion and good potential for new discoveries across the property. Furthermore, we take great pride in how the study has incorporated socio-economic sensitivities brought to us by both First Nations and the citizens of the local village of Carmacks. We will now focus on advancing the Klaza project toward pre-feasibility through additional exploration, environmental permitting and further studies.

Click here for the full press release.