A pre-feasibility study on GoldQuest Mining Corp.'s Romero gold-copper project estimated an after-tax net present value of US$202.7 million, using a 5% discount rate, with a 28.2% internal rate of return and a 2.5-year payback period, the company said Sept. 27.
Romero forms part of the company's Tireo property in the Dominican Republic.
The study considers an underground 2,800-tonne-per-day mining operation that would produce about 1.1 million gold equivalent ounces over an eight-year mine life, with all-in sustaining costs of US$595 per gold equivalent ounce.
The project will require initial CapEx of US$158.6 million, while life-of-mine CapEx was estimated at US$250.9 million, including US$81.7 million in sustaining capital and US$15.5 million in closure costs.
The pre-feasibility study incorporated an initial reserves estimate and updated resources for the project, as well as metal price assumptions of US$1,300 per ounce of gold, US$20 per ounce of silver and US$2.50 per pound of copper.
Romero hosts probable reserves of 7.03 million tonnes grading 3.72 g/t of gold, 4.33 g/t of silver and 0.88% copper for 1.1 million ounces of gold equivalent, or 840,000 ounces of gold, 980,000 ounces of silver and 136 million pounds of copper.
Indicated resources contain 2.3 million gold equivalent ounces within 20.2 million tonnes grading 2.67 g/t of gold, 0.61% copper, 0.30% zinc and 4.0 g/t of silver, while inferred resources contain 240,000 ounces of gold equivalent within 3.0 million tonnes grading 2.03 g/t of gold, 0.33% copper, 0.32% zinc and 2.9 g/t of silver.