Wednesday, October 15, 2025

Latest

Freeman Gold Sees Lemhi Project NPV Improve To $648 Million Under Revised PEA Pricing

The economics for Freeman Gold’s (TSXV: FMAN) Lemhi Gold Project in Idaho keep improving. The company this morning released the results of a revised preliminary economic assessment, following an update to the price sensitivity analysis of the study.

The revised PEA has outlined an after-tax net present value (5% discount) of $329 million and an IRR of 28.2% for the project based on a gold price of $2,200 an ounce gold. The revised figures meanwhile suggest a payback period of 2.9 years. Economics of course improve even more when utilizing a gold price of $2,900 an ounce, with the NPV rising to $648 million, while the IRR moves to 45.9% and the payback period falls to 2.1 years.

The original PEA, released in October 2023, comparatively had outlined an after-tax NPV of $212 million with an IRR of 22.8% and a payback period of 3.6 years, based on $1,750 an ounce gold.

The analysis is based on an operation that would produce on average 75,900 ounces of gold a year over an 11.2 year life of mine. The estimate is based on mill head grades averaging 0.88 g/t, with recoveries of 96.7%.

With total life of mine production of 851,900 ounces, at $2,200 an ounce gold, cash costs are estimated to be just $925 an ounce, while all in sustaining costs come in at $1,105 an ounce. Initial capital costs meanwhile have grown from $190 million in the prior report to $215 million today, while sustaining costs have moved from $101 million to $105 million.

“Significant changes in gold prices over the last 18 months motivated Freeman’s reassessment of its initial PEA model over a more fulsome range of scenarios. Using the current spot gold price, the Lemhi Gold Project will have an approximate US$1,871/oz cash margin using the updated all in sustaining cost of US$1,105/oz with significant additional upside at higher prices,” commented Freeman CEO Bassam Moubarak on the revised study.

Freeman Gold last traded at $0.09 on the TSX Venture.


Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Military Seizes Power in Madagascar After President Flees

Altamira Gold Hits 395.5 Metres Of 0.4 g/t Gold At Maria Bonita

Related News

Freeman Gold Begins Lemhi Metallurgical Test Work

This morning Freeman Gold (CSE: FMAN) announced they have begun metallurgical test work on their...

Tuesday, January 19, 2021, 08:23:23 AM

Freeman Gold Completes 7,149 Metre Drill Program At Lemhi Gold Project

Freeman Gold (CSE: FMAN) this morning announced that it has completed its 2020 drill program...

Wednesday, December 16, 2020, 08:16:02 AM

Freeman Gold Identifies 11 Exploration Targets At Lemhi

Freeman Gold Corp (CSE: FMAN) this morning released the results of its 2020 exploration program...

Thursday, May 6, 2021, 08:11:10 AM

Lodge Resources Changes Name To Freeman Gold Corp

Lodge Resources (CSE: LDG) announced this evening that it will be changing its name effective...

Tuesday, May 19, 2020, 08:54:52 PM

Freeman Gold Corp Closes $10.35 Million Oversubscribed Financing

Freeman Gold Corp (CSE: FMAN) has closed its previously announced bought deal public offering on...

Tuesday, July 28, 2020, 09:51:22 AM