Current gold prices are push fresh economic studies to new heights. Gold X2 Mining (TSXV: AUXX) this morning published the results of a preliminary economic assessment for their flagship Moss Gold Project in Ontario, the results of which are highly positive.
The project under the base case scenario boasts an after-tax net present value (5%) of $2.2 billion, alongside an IRR of 22.1% and a payback period of 3.2 years. Those figures are based on US$2,750 an ounce gold and US$35.00 an ounce silver. Under spot pricing however, which uses US$4,600 an ounce gold and US$90 an ounce silver, the economics of the project see the NPV rise to $6.58 billion, while the IRR rises to 48.6% and the payback period drops down to just 1.0 year.
Those figures are based on an open pit gold project that would see the annual production of 265,000 ounces of gold and 374,000 ounces of silver over an initial 13.2 year mine life.
Processing will consist of a 30,000 tonne per day milling-flotation-leach operation to ultimately produce gold dore. Average recoveries of 91.7% are anticipated for gold and 82.8% for silver.
Initial capital costs under the model are estimated at $2.0 billion, which includes contingencies of $303 million, while sustaining capital is pegged at $839 million. Cash costs are estimated at US$999 an ounce and all in sustaining costs are estimated at US$1,188 an ounce.
“The Company has done extensive work internally and with G Mining to ensure a realistic high-quality study underpinned by solid geological and engineering work. We look forward to advancing the Project towards a Feasibility Study and the formal permitting process in the second half of 2027,” commented Michael Henrichsen, CEO of Gold X2 on the results.
An updated mineral resource estimate was announced in conjunction with the preliminary economic assessment, Total indicated resources consist of 2.46 million ounces of gold at 1.04 g/t and 3.16 million ounces of silver at 1.53 g/t. While inferred resources total 4.21 million ounces of gold at 0.97 g/t and 6.27 million ounce of silver at 1.55 g/t.
The company has indicated that with the completion of the PEA, they have a two year timeline to enter the stages of a feasibility study, environmental approval, and permitting.
Gold X2 Mining last traded at $0.95 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.
