Capital and Operating Costs and Project Economics The SRK LoM plan and economics are based on the following: • Reserves of 2.0 million tons at an average grade of 0.245oz-Au/ton, containing a total of 486koz of gold; • A mine life of 4 years from 7 mines and various stockpiles, at a total average rate of 496kt per year; • An overall average metallurgical recovery rate of 87%, producing 423koz of gold over the LoM; • A cash operating cost of $434.49/Au-oz, or $92.59/ore-ton; • Total capital costs of $31.9 million being comprised of $3.6 million for mine equipment, $9.5 million for capitalized development, and $2.3 million for facilities, and sustaining capital of $9.2 million for process, administration, surface services, and $7.3 million tailing impoundment; and • Salvage value of $16.9 million. The base case economic analysis results, shown in Table 17.8.1, indicate an after-tax net present value of $25.4 million at a 7.5% discount rate. |