Westhaven Gold posts updated PEA for Shovelnose Gold Project, British Columbia
Westhaven Gold Corp. [TSXV: WHN] reported the completion of an Updated Preliminary Economic Assessment (PEA) at its 100%-owned 41,634-hectare Shovelnose Gold Property located within the prospective Spences Bridge Gold Belt (SBGB), which borders the Coquihalla Highway 30 km south of Merritt, British Columbia.
The PEA outlines a robust, low-cost, rapid pay-back, high margin, 11.1-year underground gold mining opportunity and is based on updated mineral resources that include contributions from the South, Franz and FMN zones.
At a gold price of US$2,400/oz and an exchange rate of C$1.00 to US$0.72, the Shovelnose Base Case estimate generates an after-tax net present value (NPV) at a 6% discount rate of $454 million and an internal rate of return (IRR) of 43.2%. The proposed mine will operate over an initial 11.1-year mine-life with average annual life-of-mine gold production of 56,000 ounces. Initial capital expenditure to fund construction and commissioning is estimated at $184 million, with a life-of-mine capital cost of $379 million and a payback period of 2.1 years. The all-in sustaining costs (as defined per World Gold Council guidelines, less corporate G&A) are estimated to be US$836/oz of gold produced.
Gareth Thomas, President & CEO, commented: “Westhaven’s flagship Shovelnose Gold Property is ideally situated, in close proximity to roads, power and infrastructure in a tier 1 mining jurisdiction. Production contribution from both Franz and FMN provide valuable ounces that bring gold production forward in the schedule resulting in payback of initial capital costs in just 2.1 years. Our intention is to continue to advance this cornerstone project in parallel with our ongoing exploration efforts to further expand the gold-silver mineral inventory on this highly prospective land package. The next steps towards rapidly advancing development include further de-risking initiatives such as continued environmental baseline studies, permitting requirements, along with other cost and technical requirements.”
Westhaven is advancing the high-grade discovery on the Shovelnose project in the Spences Bridge Gold Belt. Westhaven controls ~61,512 hectares (~615 km2) with four gold properties spread along this underexplored belt. The Shovelnose property is situated off a major highway, near power, rail, large producing mines, and within commuting distance from the city of Merritt, which translates into low-cost exploration.