Robust PEA for Garrison in Kirkland Lake region
The preliminary economic assessment (PEA) for O3 Mining’s Garrison project, in Kirkland Lake, Ontario, has yielded robust results, with attractive economics, low capital expenditure (capex) and low capital intensity.
The PEA is based on an 11 000 t/d openpit mining and carbon-in-leach processing operation with production spanning 12 years.
The PEA delivers an after-tax internal rate of return of 33% and after-tax net present value of C$321-million at a $1 450/oz gold price. The project will target of 121 000 oz/y during years one to eight, while peaking at more than 155 000 oz in year two. All-in sustaining costs are estimated at $818/oz.
The initial capex would be C$267-million for a four-million-tonne a year processing plant.
"Garrison has been in the shadow of our Marban and Alpha properties in Québec, but as this PEA shows, it is an integral part of the value proposition of O3 Mining,” said president and CEO Jose Vizquerra.
Garrison came from Osisko Mining, which completed exploration work that defined the initial resource.
Today, Garrison is a 2.9-million-ounce deposit in the heart of one of the most recognised mining districts in Canada.
"The Garrison PEA demonstrates an NPV of C$321-million which follows hot on the heels of our Marban PEA in Québec which also demonstrated compelling project economics with an after-tax NPV of C$423-million, an IRR of 25.2% with a 15-year mine life and an average annual gold production of 115 000 oz. Together these PEAs mark the transition of O3 Mining from an explorer to an up-and-coming gold developer with a total NPV of C$744-million of fundamental value," added Vizquerra.
Garrison has a measured and indicated mineral resource of 66.3-million tonnes at 0.86 g/t gold for a total of 1.8-million ounces, and an inferred mineral resource of 45.3-million tonnes at 0.73 g/t gold for a total of 1.1-million ounces.
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