Cartier Resources (TSXV: ECR) has released an updated preliminary economic assessment for its Cadillac gold project. The study puts the project’s after-tax net present value at C$1.0 billion using a 5% discount rate, with an after-tax internal rate of return of 26.6%.
The base case uses gold at US$3,600 an ounce and an exchange rate of 1.38 Canadian dollars to the US dollar, with after-tax payback pegged at 4.3 years. At a spot price of US$4,300, the NPV rises to C$1.57 billion and the IRR to 37.3%.
The study replaces the April 2023 PEA on what was then called the Chimo Mine project. Cartier said the update incorporates a December 2025 resource estimate, metallurgical results released in May and a much higher gold price environment. That earlier study, built on US$1,750 gold, delivered an after-tax NPV of C$388 million and an IRR of 20.8%.
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The revised plan calls for a fully underground longhole stoping operation across five mining areas over a 16.2 year life. Output is expected to average 100,000 ounces a year, for a total of 1.61 million ounces. Mining peaks at 4,300 tonnes per day, with 23.1 million tonnes grading 2.28 g/t gold slated for processing. Recoveries are expected to average 95%.
Processing will be staged. For pre-production and the first year of production, material will be sent to an outside mill for processing at 3,000 tonnes per day. In year 2, a 3,000 tonne-per-day plant on the property takes over, and it expands to 4,300 tonnes per day from year 5.
Initial capital is estimated at C$275.8 million, down from C$341 million in 2023. Growth capital adds C$277.1 million, while sustaining capital totals C$1.1 billion.
Costs are much higher than in the original PEA. Cash costs come in at US$1,502 an ounce and all-in sustaining costs at US$2,137, compared with US$647 and US$755, respectively, in 2023. Sustaining capital alone accounts for US$635 an ounce of the current AISC.
That still leaves a margin of about US$1,460 an ounce at the base-case price. The project is forecast to generate C$2.77 billion in after-tax free cash flow over its life.
“The positive results of the study demonstrate the project’s economic viability at the PEA level while highlighting several opportunities for further optimization,” said President and CEO Philippe Cloutier. “With low initial CAPEX requirements, we now have additional strategic solutions that offer flexibility to advance development.”
About 35,000 metres of drilling from 2025 and 2026 has yet to be added to the resource. New discoveries at the Contact and Hope sectors are also outside the current plan.
Cartier Resources last traded at $0.325 on the TSX Venture.
One Response
I have been somewhat surprised at the lack of media/commentary coverage regarding Cartier’s Val D’or property. Steady positive results, excellent jurisdiction, existing infrastructure, good finances, AEM involvement, etc. Seems like quite the sleeper.Thoughts?