A preliminary feasibility study for INV Metals Inc.'s Loma Larga gold project in Ecuador showed the project wouldgenerate an after-tax net present value of US$300.9 million and internal rate ofreturn of 26.3%, according to a July 14 statement.
The study uses a 5% discount rate, assumes a gold price of US$1,250per ounce and uses the updated probable reserves of 1.86 million ounces of containedgold. The project also hosts indicated mineral resources of 2.55 million ouncesof gold and 540,000 ounces in the inferred category.
A 2015 study outlineda pretax net present value of US$288.4 million at a 5% discount rate, and an internalrate of return of 23.2%.
The study supports an underground mining operation of 3,000 tonnesper day that will produce 150,000 ounces per annum over a mine life of about 11years.
The project will also produce 9.83 million ounces of silver and60.55 million pounds of copper.
The previous study was based on a medium-scale 1,000 tonnes perday mining operation.
Initial CapEx is estimated at US$285.9 million with payback in2.7 years. Meanwhile, all-in sustaining costs will come in at US$577 per ounce ofgold sold.
In addition, the company plans to upgrade the inferred mineralresource to indicated category to be considered for the project's bankable feasibilitystudy, which is expected to start before the end of the year.