Grande Portage Resources (GPG.V), which saw its shares gain near 6% yesterday, provided Wednesday the results of a preliminary economic assessment (PEA) on the New Amalga gold project in Alaska.
Among economic and production highlights, GPG in a statement said the base case using a US$3,200/oz gold price generates a pre-tax Internal Rate of Return of 69% (after-tax 56%) and a pre-tax net present value at a 5% discount rate of US$979 million (after-tax US$721 million).
The PEA production plan incorporates an underground mine with a base case production life of seven years with total production of 1.05 million gold ounces shipped. Gold production averages approximately 150,000 ounces shipped per year. Pre-production capital cost was pegged at $254.8 million, including US$46.4M contingency.
"The strong results of the PEA confirm our contention that the project's offsite processing strategy is the optimal development pathway, with high margins, rapid payback, and straightforward engineering combined with a very small environmental footprint," President and Chief Executive Officer Ian Klassen said.
"This PEA positions the project well for the future, where detailed design, capital optimization, baseline environmental studies and permitting can advance with confidence," Klassen added.
Shares in GPG were up $0.025 or 5.8% to $0.4550 yesterday.