Luminex Resources Corp. (TSXV: LR) shared today the results of its preliminary economic assessment for its 90%-owned Condor Project in Zamora Chinchipe province, Ecuador. The results highlighted a $387 million after-tax NPV5% and 16.0% after-tax IRR.
The company used base case prices of $1,600 per gold ounce and $21 per silver ounce, with figures in the results are reported based on 100% ownership. The PEA identifies a 12 year life of mine, with annual production of 187,000 ounces of gold and 758,000 ounces of silver.
The results also estimated total indicated resources of 110.7 million tonnes grading 0.75 g/t gold equivalent and containing 2.7 million gold equivalent ounces. On the other hand, total inferred resources are estimated to be 224.3 million tonnes with a 0.72 g/t gold equivalent grade and containing 5.2 million gold equivalent ounces.
Furthermore, average operating costs are estimated to be $18.81 per tonne of material milled for the first 5 years, $14.02 for the next 7 years, and $15.98 for the life of mine. All-in sustaining cost is expected to be $841 per ounce for the first 5 years, $835 for the next 7 years, and $839 for the life of mine.
The estimate for the initial capital requirement is at around $607 million, not including the refundable value-added tax of $50 million.
The mining firm plans to expand mineable resources at the project by moving beyond the Camp deposit, as well as drill-testing new target sites like Prometedor and Nayumbi.
Luminex Resources last traded at $0.64 on the TSX Venture.
Information for this briefing was found via Sedar and Luminex Resources. 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.