Name of the Project
Golden Highway project.

Location
The project is located in Timmins, in Ontario, Canada.

Project Owner/s
Moneta Porcupine Mines.

Project Description
A preliminary economic assessment (PEA) has demonstrated robust economics and is based on a standalone, owner-operated mine and mill.

The PEA of the South West deposit at the Golden Highway project envisages underground mining using ramp access, with longitudinal longhole stoping mining methods. The initial development of the access ramp is to be performed by contractors, with mine development and ore production transitioning to 100% owner opera­tions in Year 2.

Two years have been scheduled for the ramp-up of production, with the full production rate of 1 750 t/d being achieved in Year 3. Full production occurs for nine years for a total mine life of 11 years, with average production of 75 700 oz/y during full production, peaking in Year 5 with 85 700 oz of gold produced.

The proposed base case development option involves the construction of an ore stockpile pad, as well as a 1 750 t/d processing plant with sufficient crushing, grinding and leach capacity to process the ore and recover gold into doré bars. For this option, a tailings dam with capacity of about six-million tonnes is required to be built on site. No camp is required, owing to the proximity of major population centres with significant local mine contracting and technical expertise.

The PEA also reviewed the option to process the mined resource at South West using an existing processing plant in the Timmins mining camp. This envisages the same mine plan and production rate, with trucking to an existing processing plant and payment of a toll milling rate for the processing of ore and the recovery of gold.

The same underground development capital costs and mine development infrastructure are used, but no processing plant and no tailings storage facility is proposed in the development plan. The toll treating options will allow for a faster development time with fewer permitting requirements, less construction time and lower capital requirements to develop the toll milling option.

Potential Job Creation
None stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of C$368.2-million and an internal rate of return of 39.2%, with a payback of 2.9 years.

Capital Expenditure
Initial capital costs are estimated at C$144.2-million.

Planned Start/End Date
None stated.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Moneta Porcupine Mines, tel +1647456 9223 or email larmstrong@monetaporcupine.com.