A revised preliminary economic assessment for Otis Gold Corp.'s Kilgore epithermal gold deposit in Idaho increased the net present value, at a 5% discount rate, to US$110.4 million, from US$97.6 million previously outlined.
The change was based on the deepening of the main pit design to allow the extraction of more minerals, according to an Aug. 27 release.
Internal rate of return changed to 34%, based on the same discount rate. Payback period was cut to 3.0 years for initial costs of US$81.2 million, with total costs estimated at US$97.5 million over a 5.0-year mine life.
The revised PEA, which assumed a gold price of US$1,300 per ounce, estimated an average annual gold output of 111,700 ounces, peaking in the first year at 119,600 ounces.
Total gold recovered was pegged at 558,700 ounces at an average all-in sustaining cost of US$832 per ounce and operating cash cost of US$780/oz.
The company said that it is now focused on finding new deposits to enhance the project's life.
