Firesteel Resources Inc. said June 12 that a preliminary economic assessment of its past-producing Laiva gold property in Finland defined a net present value of C$69.0 million at a 5% discount and a 2.1-year payback period, both after taxes.
The mine has been on care and maintenance since 2014 and is expected to resume production in the fourth quarter.
Laiva is expected to produce an annual average of 75,981 ounces of gold over a six-year mine life, with all-in sustaining costs of C$974/oz.
Initial CapEx is estimated at C$7.1 million. Firesteel noted that the mine's production is financed through a US$20.6 million forward gold sale signed in late 2017.
The analysis incorporates measured and indicated resources of 3.8 million tonnes grading 1.237 g/t of gold and inferred resources of 9 million tonnes grading 1.531 g/t of gold. The estimate uses a cutoff of 0.40 g/t of gold and is effective as of August 2017.
Firesteel is planning further drilling in early 2019 to explore three properties, aiming to define additional open pits near the planned mill.
In February, Firesteel exercised a right to acquire the remaining 40% of Nordic Mines Marknad AB, securing a 100% interest in the Laiva property.
