LeaGold Mining Corp. said Jan. 16 that a feasibility study for its Los Filos gold mine in Mexico defined a posttax net present value, discounted at 5%, of US$565 million and an 87% internal rate of return.
The study was based on a proven and probable reserve of 111.3 million tonnes grading 1.23 g/t gold containing 4.5 million ounces of gold. The study used a gold price of US$1,250 per ounce.
LeaGold expects gold production of 3.3 million ounces over a total mine life of 10 years at all-in sustaining costs of US$795/oz.
After the initial expansion phase, average annual production is estimated at 350,000 ounces at all-in sustaining costs of US$759/oz, with production to exceed 400,000 ounces from 2021 to 2023.
The study pegged capital expenditures of US$180 million to develop the Bermejal underground area and build a new 4,000-tonne-per-day carbon-in-leach processing facility to complement the existing heap leach facilities.
Proven and probable open pit reserves at Los Filos surged 122% in November 2018, compared to the previous estimate, to 780,000 ounces of gold contained within 40.5 million tonnes grading 0.60 g/t gold.