A preliminary economic assessment for Metanor Resources Inc.'s Barry gold project in Quebec has estimated an after-tax net present value of C$25.9 million, using a 6% discount rate and an internal rate of return of 94%.
The company will require initial CapEx of C$8.5 million, with payback in 0.71 years at a gold price of C$1,560 per ounce.
The project will produce 193,457 ounces of gold over a nine-year mine life at an all-in production cost of C$1,114 per ounce of gold.
Bachelor will run at a 1,200-tonne-per-day rate, yielding an average grade of 1.75 g/t of gold diluted for the life of mine, including 2.61 g/t of gold over the first three years with a metallurgical recovery of 95%.
The Barry open pit contains measured and indicated resources of about 2.5 million tonnes grading 1.52 g/t of gold for 122,000 ounces of contained gold. Inferred resources, meanwhile, total 1.2 million tonnes grading 2.69 g/t of gold for 101,000 ounces of contained gold.
Earlier in September, Metanor started an 8,000-meter drill campaign at its Barry gold property, with an aim to increase the mineral resources around the pits and enhance the quality by converting inferred resources to the indicated category.