Minera IRL Reports US$189 Million After-Tax NPV In Ollachea Gold PEA
Minera IRL Limited (CSE: MIRL) reported this morning the preliminary economic assessment results out of its flagship Ollachea gold project in Southern Peru. The results highlighted an after-tax NPV7% of US$189 million at a base case price of $1,600 per gold ounce.
The preliminary assessment also reported 38% after-tax IRR and a potential $353 million cash flow for the life of mine.
The PEA, prepared by Mining Plus, estimates the life of mine at 11 years. The estimated gold production throughout will be 876,200 gold ounces, with an average annual production of 66,000 gold ounces for the first 4 years.
Estimated head grade is at 4.0 g/t gold for the first 4 years and 3.0 g/t gold for the life of mine, while gold recovery is expected to be 90.3% for the first 3 years and 86.2% for the life of mine.
The report also stated an estimated all-in sustaining cost of US$794 per gold ounce for the life of mine. In terms of capital expenditure, the start-up expenses for the property are assessed to be US$89 million and expansion investments can reach up to US$37 million.
The results also updated the mineral resource estimate at the Minapampa and Minapampa Far East zones within the Ollachea project. The indicated mineral resource is now at 10.7 million tonnes at 3.28 g/t gold grade containing 1.13 million gold ounces. On the other hand, inferred mineral resource is at 7.3 million tonnes at 2.7 g/t gold containing 0.6 million gold ounces.
The mining firm also relayed that it plans to conduct additional exploration activities, though no exploration program is planned for the balance of this year.
Minera last traded at $0.075 on the CSE.
Information for this briefing was found via Sedar and Minera IRL. 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.