Snowline Gold (TSXV: SGD) says a preliminary economic assessment (PEA) for its Valley deposit at the Rogue project in Canada’s Yukon Territory shows robust economics for what could become a world-class mining operation.
The study presents a 20-year mine life producing 6.8 million oz. of gold through conventional open-pit mining and milling. Average production over the first five years is projected at 544,000 oz. annually, with an all-in sustaining cost (AISC) of $569 per oz. in that period. Life-of-mine AISC is estimated at $844 per ounce.
Based on a gold price of $2,150 per oz., the project carries a post-tax net present value (NPV) of C$3.37 billion at a 5% discount rate, with an internal rate of return (IRR) of 25%. At a higher price of $3,150 per oz., the post-tax NPV rises to C$6.8 billion and the IRR increases to 37%. The initial capital cost is pegged at C$1.7 billion, with a projected payback…
