A feasibility study on Dalradian Resources Inc.'s Curraghinalt gold-silver project in Northern Ireland defined a posttax net present value of US$301.1 million, at a 5% discount rate, with a 24.4% internal rate of return and a 4-year payback period.
The proposed underground operation is expected to produce 1.36 million ounces of gold and 380,000 ounces of silver over an initial 10.5-year mine life. Average annual gold production is pegged at 130,000 ounces for the first 10 years, with average life-of-mine cash costs of US$556 per ounce and all-in sustaining costs of US$674 per ounce.
Initial CapEx is estimated at US$192.0 million, including US$17.6 million in contingency, with sustaining CapEx expected to come in at US$165.1 million. Construction is expected to take 18 to 24 months to complete.
The study incorporates an initial reserves estimate for the property. Curraghinalt hosts proven and probable reserves containing 1.4 million ounces of gold and 664,000 ounces of silver within 5.2 million tonnes grading 8.54 g/t of gold and 3.9 g/t of silver.
"One of the project's main competitive strengths is the high reserve grade, which would place it in the top 10% of gold mines world-wide," Dalradian President and CEO Patrick Anderson said in a Dec. 12 statement.
An updated resource estimate for Curraghinalt, completed in May, increased measured and indicated gold ounces by 109%, while test stoping completed in September recovered 54% more gold than expected.
Dalradian also reported that preliminary results of test work aiming to increase grades and reduce processing tonnage are positive, with final results anticipated in the first half of 2017.