Pershing Gold Corp. said June 5 that a preliminary feasibility study on its Relief Canyon gold-silver project in Nevada outlined an after-tax net present value, discounted at 5%, of US$126 million and an internal rate of return of 85%.
The mine will produce an average 93,900 ounces of gold over its 5.6-year mine life at all-in sustaining costs of US$802 per ounce.
Initial CapEx were estimated at US$23.6 million, with the study recommending that the company advance the project to a production decision.
The study also allows for the conversion of about 80% of the gold ounces and 73% of the tonnage in the measured and indicated resources categories to proven and probable reserves.
Relief Canyon hosts proven and probable reserves of 30.5 billion tonnes grading 0.72 g/t of gold for 634,900 ounces of contained gold.
The study assumed a gold price of US$1,250 per ounce.