Sonoro Gold Corp CEO Kenneth MacLeod joined Steve Darling from Proactive to announce the positive outcomes of an independent Preliminary Economic Assessment (PEA) conducted on the Cerro Caliche gold project in Mexico.
The assessment offers a promising glimpse into the project's potential viability as a nine-year life-of-mine open pit, heap leach mining operation.
The PEA outlines a production plan characterized by an initial two-year production rate of 4,000 metric tonnes per day, followed by a subsequent increase to 12,000 for the remaining life of the mine.
MacLeod highlighted key figures derived from the PEA. Notably, over approximately 30% of the project area, the results are positive, with a pre-tax net present value (NPV) discounted at 5% amounting to $71.4 million.
Furthermore, the pre-tax internal rate of return (IRR) stands at an impressive 59%, while the after-tax NPV5 reaches $47.7 million with an IRR of 45%. The assessment also indicates gold recovery of 72% and silver recovery of 27%.
Regarding project costs, the initial capital expenditure (CAPEX) is projected at $15.5 million, which includes a contingency of $1.83 million. The payback period is estimated to be 2.9 years, underscoring the financial feasibility of the endeavour.
The PEA not only present a snapshot of the project's potential but also hints at additional opportunities. Parallel and strike extensions to the current vein trends offer prospects for further exploration and expansion, thereby enhancing the project's long-term prospects.
As the project progresses, the company anticipates the initiation of exploration drill programs to capitalize on these additional opportunities.
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Sonoro Gold Corp