Over the life of the mine, average annual production would be 236,000 oz. at an all-in sustaining cost of $962 per ounce.
The Cariboo mine has an after-tax net present value at a 5% discount of C$764 million and an after-tax internal rate of return of 21.4%. The project has a payback period of six years. The annual after-tax free cash flow is expected to be C$112 million over 12 years of commercial production. A gold price of $1,750 was used in the calculation of these amounts.
The mine site is located southeast of the town of Quesnel. Three key deposits – Cow Mountain, Island Mountain and Barkerville Mountain – are to be mined. The measured and indicated resource estimate totals 27.1 million tonnes averaging 4.0 g/t gold for a total of 3.27 million oz. The inferred resource is 14.4 million tonnes grading 3.5 g/t gold for 1.6 million oz.
Ore will be processed at the existing Quesnel River (QR) mill. Osisko indicated last year…
