Golden Independence Mining Corp. [IGLD-CS; GIDMF-OTCQB; 6NN-FSE], operator, released the results of a positive preliminary economic assessment (PEA) for the 51%-owned flagship Independence Project, which adjoins the Nevada Gold Mines Phoenix-Fortitude mining operations in the Battle Mountain/Cortez trend, 24 miles southwest of Battle Mountain, Nevada.
Independence PEA highlights include an After-Tax NPV5% of US$35 million with an IRR of 18% at US$1,700/oz gold and US$24/oz silver; significant leverage to metal prices with after-tax NPV5% of US$45M and IRR of 22% at spot prices. Average annual production of 32,050 oz gold at an AISC of US$1,078/oz (net of silver credits); LOM production of 195,443 oz gold and 1,281,420 oz silver; LOM after-tax cash flow of US$59 million at Base Case prices and US$72 million at spot prices. Initial Capital of US$63 million, including working capital and contingencies. Mine life of 6.1 years exploiting only 60% of the near surface resource contained within a US$1,800/oz gold price pit. Â Spot prices used were US$1,799/oz gold and US$22.47/oz silver.
â€œThe PEA shows that at Base Case gold prices of US$1,700/oz, the heap leach component of the Independence Project has a significant positive net present value and very strong leverage to the gold price. At current spot prices, the project’s estimated net present value increases by over 30% to US$45 million with an after-tax IRR of 22%,â€ stated Golden Independence CEO, Christos Doulis. â€œOur focus in 2022 will be to continue to examine opportunities to significantly grow the Project though additional exploration work and strategic acquisition, additionally, unlocking the value of the high-grade skarn, and advancing and expanding the heap leach component of the Project.â€
The PEA provides an attractive preliminary economic case for the near-surface development of the Independence project.
Golden Independence Mining, operator of the Independence Joint Venture with Americas Gold Exploration Inc., is a development company focused on the advanced-stage Independence Project.