Crusader Resources Ltd. said Feb. 8 that an optimization study for the Borborema gold project in Brazil estimated a posttax net present value, discounted at 8%, of US$117.8 million and an internal rate of return of 31%.
The study was based on an ore reserve of 1.6 million ounces of gold contained in 42.4 million tonnes grading 1.18 g/t and a gold price of US$1,300 per ounce.
Preproduction CapEx for a contract mining scenario, a planned 2 million tonnes per annum carbon-in-leach plant and associated infrastructure is pegged at US$93.4 million, with sustaining CapEx of US$13.1 million.
The previous draft bankable feasibility study was based on a 4.2 Mtpa operation.
The company expects average gold production over an initial 10-year period of about 70,000 ounces at a cash cost of US$724 per ounce and an all-in sustaining cost of US$908 per ounce.
Crusader plans to undertake activities to advance the project, including the restart of metallurgical testwork, a further review of the GNA crushing circuit proposal and the compilation of all aspects of the project into a revised feasibility study.
