KORE Mining released a preliminary economic assessment for its California-based Imperial oxide gold deposit.
KORE Mining (TSXV:KORE,OTCQB:KOREF) released a preliminary economic assessment (PEA) for its California-based Imperial oxide gold deposit.
Highlights are as follows:
- Robust economics: US$ 343 million NPV5% post-tax with 44% IRR at US$1,450 per ounce gold
- Low capital intensity project with only US$ 142 million pre-production capital cost
- 146,000 ounces gold per year over 8 years for 1.2 million ounces total production
- Technically simple project: shallow open pit, run-of-mine heap leach with existing infrastructure
- Significant leverage to gold price: US$ 464 million NPV5% at recent spot US$1,620 per ounce gold
- Value enhancement through Mesquite-Imperial-Picacho District exploration and resource expansion
Scott Trebilcock, CEO of KORE Mining, commented:
Imperial is a technically simple, high-return gold project in a safe, politically stable jurisdiction with a long tradition of gold mining. The PEA delivers robust project economics based on very reasonable capital expenditures. This low capital intensity derives from the simplicity of the project which will utilize conventional open pit mining techniques, proven processing and existing infrastructure.
We see the potential to increase value at Imperial through regional exploration and resource expansion drilling which are planned for later in 2020. The Imperial PEA generates strong returns at US$1,450 per ounce, but at near today’s spot price of US$1,600 per ounce, the project has potential to deliver exceptional returns with an NPV5% of US$ 450 million.