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Golden Dawn: Greenwood gold project PEA estimates C$23.3M NPV, 61.5% IRR

Golden Dawn MineralsInc. said April 7 that the updated preliminary economic assessment onthe Greenwood goldproject in south-central British Columbia has indicated a positive underground miningproject at near current gold prices.

At a gold-price of US$1,250 per ounce and copper price of US$3.00per pound, using an exchange rate of C$1.00 to equal 82 U.S. cents per share, theproject will generate an after-tax net present value of C$23.3 million at a 6% discountrate and yield an internal rate of return of 61.5%.

The mines are projected to produce 104,000 gold equivalent ouncesover five years at an all-in life of mine sustaining cash cost of US$820 per ounceof gold.

The study incorporates expanding the existing 200-tonnes-per-daymill to 400 tonnes per day after the first year of operation, which will resultin an annual gold production of 27,000 gold equivalent ounces.

Initial capital costs are expected at C$9.6 million, and totallife of mine capital is estimated to be C$33.5 million.

The payback period is estimated to be 1.9 years.

Gross revenue is estimated to total C$157.8 million, with operatingcash flow of C$44.7 million.

The project will cover two deposits — the Lexington-Grenoblecontaining 356,000 tonnes of mill feed at an average diluted grade of 5.48 g/t ofgold and 0.90% copper, and the Golden Crown with 191,000 tonnes at an average dilutedgrade of 8.67 g/t of gold and 0.48% copper.

Golden Dawn also expects to identify additional nearby resourcesas the current mineral resource at the Lexington-Grenoble deposit is open alongtrend with indication of possible parallel zones.

In February, Golden Dawn signed a letter of intent with to acquire the Greenwoodgold project.