Midas Gold (TSX: MAX) this morning announced the completion of a feasibility study for its Stibnite Gold Project, located within the state of Idaho. The study, at a price of US$1,850 per ounce gold, provides a net present value with a 5% discount rate to the project of US$1.9 billion, while annual free cash flow of US$594 million is expected over the first four years of the project, with a payback of just 2.5 years.
The Stibnite Gold project is expected to be beneficial to the region, and not just company shareholders, with an estimate of 550 direct jobs being supplied to the region along with an estimated $1.0 billion in initial capital investment that will be spent within the region. The proposed project is for an open pit mine, along with an onsite mill, while also dealing with historical tailings and committing to environmental restoration of prior mining conducted on site.
The feasibility study conducted is based on 637 holes drilled by the company over a length of 344,465 feet, as well as additional drilling by past operators where applicable. Total measured and indicated resources are listed as 6.0 million ounces of gold, 8.8 million ounces of silver, and 205.9 million pounds of antimony. Inferred resources meanwhile contain 1.2 million ounces gold, 1.8 million ounces of silver and 29.3 million pounds of Antimony, across the Yellow Pine, Hangar Flats, and West End deposits as well as historical tailings.
Total proven and probable reserves meanwhile amount to 4.8 million ounces gold, 6.4 million ounces silver, and 148.7 million pounds of antimony.
Mine life is currently estimated to be 12.0 years within the study, while the mill is estimated as having a life of 14.3 years. This is based on 466,000 ounces of gold being recovered for each of the first four years, and an overall average of 301,000 ounces per year over the life of the mine. Projected cash costs in the first four years are slated at $317 per ounce, while all-in sustaining costs are estimated at $427 per ounce, with initial capital inputs, including contingency, pegged at $1.3 billion.
The full report on the firms feasibility study can be found here.
Midas Gold last traded at $1.25 on the TSX.
Information for this briefing was found via Sedar and Midas Gold Corp. 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.