A preliminary economic assessment (PEA) for Cartier Resources‘ (TSXV: ECR) Chimo gold mine project in Quebec demonstrates it could produce 116,900 oz. gold annually over 9.7 years, with a post-tax internal rate of return estimated at 20.8%.
The study pegs Chimo’s post-tax net present value (at a 5% discount rate) at $388 million using a long-term gold price of US$1,750 per oz.
The capex for the project, located 45 km east of Val d’Or, is estimated at $341 million, and its payback period at 2.9 years. All-in sustaining costs are expected to be US$755 per ounce.
Chimo is planned as a 4,500-tonne-per-day underground mine, using conventional longitudinal and transverse longhole stoping.
The processing plant would have a capacity of 3,000 tonnes per day and a recovery rate of 93.1%. Ore sorting before milling would reduce mill construction costs, material handling, and the environmental footprint of the tailings management facility.
Cartier says the PEA demonstrates economic viability as well as several optimization opportunities. Two drills are turning at the site, and the results point toward increasing the resource.
Resources in the North, Centra and South corridors are 7.1 million indicated tonnes grading 3.14 grams gold per tonne for 720,000 ounces. The inferred resource is 18.5 million tonnes grading 2.75 grams gold for over 1.6 million oz. of gold.
Cartier shares trade at 14¢ in a 52-week range of 7.5¢-18¢. The company has a market cap of $42.4 million.
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