It also showed an increased production profile, from 115,000 oz. of gold as shown in the 2020 preliminary economic assessment (PEA) to 161,000 oz. This is supported by a 50% increase in mill throughput, 15% increase in peak mine rate, lower cut-off grade of 0.30 g/t gold, lower strip ratio of 5.1 and increased mill gold recovery.
Initial capital spending is estimated at C$435 million and includes mine preproduction, processing and infrastructure (roads, power distribution, tailings facility, ancillary buildings and water management). The capital intensity ratio (NPV/capex) is 1.1x per dollar invested.
The PFS indicated a competitive all-in-sustaining cost of $882/oz., for a post-tax payback of 3.5 years with C$760 million free cash flow over a 10-year mine life.
“We are pleased with the results of our PFS for the Marban Engineering project, which demonstrates the potential to be the next gold producer in the Abitibi region…
