The project’s after-tax net present value, based on a 5% discount rate and a $1,600/oz. base case spot gold price, is C$1.07 billion, with an internal rate of return of 31.7%. The after-tax payback period is 2.6 years. Cumulative cash flow generated by the project is C$1.93 billion after taxes.
Over a mine life of 24 years, the Tower mine would have average annual production of over 190,000 oz., including approximately 260,000 oz. in the first 11 years, for 4.6 million oz. of total gold production. Peak annual gold production could reach just under 370,000 oz.
Commenting on the PEA results, Moneta’s president and CEO Gary O’Connor stated: “We’re very pleased with the results of this PEA, which has outlined a strong base-case for a significant and highly profitable new gold mine in Ontario.
“This PEA confirms the potential for a robust gold project with compelling project economics and represents an important interim…
