Kaminak Gold Corporation Announces Positive Feasibility Study Results On Yukon Coffee Gold Project
After-Tax NPV5% of C$455 million and IRR of 37 %; Average Life of Mine Annual Gold
Production of 184,000 Ounces and All-In Sustaining Costs of US$550/oz Au
Production of 184,000 Ounces and All-In Sustaining Costs of US$550/oz Au
January 6, 2016
Vancouver, B.C. – Kaminak Gold Corporation (“Kaminak” or the “Company”) (KAM: TSX-V) is pleased to announce the results of a Feasibility Study prepared in accordance with National Instrument 43-101 (NI 43-101) for the Company’s 100% owned Coffee Gold Project (the “Coffee Project”) located 130 km south of Dawson City in Yukon Territory, Canada. The Feasibility Study indicates that the Coffee Project represents a robust, rapid pay-back, high margin, ten year open pit mining and heap leach project that works in the current gold price environment. As such, Kaminak intends to move forward into mine permitting to support mine construction, which is planned for mid-2018. The Company is well financed ($28 million as of September 30, 2015) to undertake an aggressive work-plan in 2016 to meet these objectives.
At a gold price of US$1,150/oz and an exchange rate of C$1.00 to US$0.78, the Coffee Project base case estimate (the “Base Case”) generates an after-tax net present value (NPV) at a 5% discount rate of C$455 million and an internal rate of return (IRR) of 37%. The proposed mine will operate over an initial ten year mine-life with average annual gold production in excess of 200,000 ounces for the first five years (excluding the initial 3 month ramp-up period), and average annual life-of-mine gold production of 184,000 ounces. Initial capital expenditure to fund construction and commissioning is estimated at C$317 million, with a life-of-mine capital cost of C$478 million (including C$60 million in closure costs). The all-in sustaining cash costs (as defined per World Gold Council guidelines, less corporate G&A) is estimated to be US$550 per ounce of gold produced. The project is expected to have a significant impact on Yukon’s GDP, generating over $2 billion of gross revenue and contributing 480 permanent, high paying jobs.
Accompanying this news release is a video corporate presentation given by Eira Thomas, Kaminak President & CEO, discussing the Feasibility Study and available for viewing by clicking the following link: https://www.webcaster4.com/Webcast/Page/1369/12606, or by visiting the Kaminak website, www.kaminak.com.
Furthermore, Kaminak is hosting a live Q&A conference call on Thursday, January 7th at 11:00 a.m. Eastern time (8:00 a.m. Pacific time) with the Kaminak Executive and Feasibility Study team. Participants may join the call by dialing toll-free North America (866) 393-4306 or International (734) 385-2616 and providing the company name (Kaminak Gold Corporation) to the operator. A recorded playback of the call will be available two hours after the call’s completion until January 21st, 2016 by dialing (855) 859-2056 and entering the conference ID#: 17824557, and on the Kaminak website.
Coffee Project Feasibility Study Overview
The Feasibility Study was initiated in July 2014 after the release of the Preliminary Economic Assessment in June 2014 and commenced with infill drilling, geotechnical investigations and other fieldwork to support the study. The Feasibility Study was prepared and led by JDS Energy and Mining Inc. (JDS), an established Yukon mine builder, in collaboration with a broad range of industry leading consultants (see Contributors below),
Highlights (all currencies are reported in Canadian dollars unless otherwise specified):
Highlights (all currencies are reported in Canadian dollars unless otherwise specified):
- A pre-tax NPV5% and IRR of $762 million and 50% respectively;
- An after-tax NPV5% and IRR of $455 million and 37% respectively;
- A mine life of ten years with peak annual gold production of 228,000 ounces in project Year 4 and average, steady state, annual gold production of 193,000 ounces (Years 1-9);
- 2,157,000 ounces of gold mined at head grade of 1.45 g/t Au (Probable Mineral Reserve of 46.4 Mt at 1.45 g/t Au, containing 2.157 Moz Au.);
- 1,862,000 ounces of gold produced after average metallurgical gold recoveries of 86.3%;
- Total cash cost estimated at US$482 /oz Au (including royalties, refining and transport) and an all-in sustaining cost (as defined by the World Gold Council less Corporate G&A) estimated at US$550/oz Au, generating an operating margin of US$600/oz or 52%;
- Initial and sustaining capital costs, including contingency, for a 100% owner-operated mine are estimated at $317 million and $161 million (including $60 million in closure costs) respectively; and
- A payback of 1.5 years pre-tax and 2.0 years after-tax after the commencement of first commercial gold production;
The Feasibility Study proposes four open pits mined by conventional shovel and truck methods at a nominal ore mining rate of 5 million tonnes per annum for approximately ten years (with Year 1 being the first full year of commercial gold production). A total of 312 Mt of material will be mined to produce 46.4 Mt of ore (strip ratio of 5.7 : 1). Run-of-mine ore will be crushed to a 2-inch feed size and placed on a heap leach pad. Gold will be extracted from the leachate by an Adsorption-Desorption-Recovery (ADR) carbon plant..
Quelle: stockwatch.com
