KORE Mining files positive PEA for California gold project
KORE Mining Ltd. [KORE-TSXV; KOREF-OTCQB] has filed the technical report supporting the positive independent Preliminary Economic Assessment (PEA) for its 100%-owned Imperial Oxide Gold Deposit, located in southeastern California, USA.
The positive PEA, announced April 6, 2020, demonstrated Imperial’s potential to be a robust heap leach, mid-tier, gold mine with compelling project economics. In addition to the gold price, Imperial has upside potential from deposit extensions and exploration on the 100%-owned Mesquite-Imperial-Picacho District which captures 28 km of strike from the operating Mesquite Mine of Equinox Gold Corp. [EQX-TSX, NYSE American] to the historic, past-producing Picacho heap leach mine.
KORE’s CEO Scott Trebilcock stated: “The Imperial PEA technical report is a key resource for investors and stakeholders seeking to understand Imperial as we move forward into permitting in mid-2020. With the recent strategic investment from Eric Sprott and Macquarie Bank we have mobilized resources to follow-up the Mesquite East exploration targets with additional geophysics and surface sampling while we permit drilling for fall 2020.”
IMPERIAL PROJECT PEA HIGHLIGHTS:
• Robust economics: US$343 million NPV (5%) post-tax with 44% IRR at US$1,450 per ounce gold
• Low capital intensity project with only US$142 million pre-production capital cost
146,000 ounces gold per year over 8 years for 1.2 million ounces total production
• Technically simple project: shallow open pit, run-of-mine heap leach with existing infrastructure
• Value enhancement through Mesquite-Imperial-Picacho District exploration and resource expansion
There were no significant changes to the previously released economic and technical data. The technical report authors recommended that KORE undertake various technical and permitting activities including:
• Execute infill and exploration drill programs (near mine targets);
• Conduct environmental baseline studies and permitting;
• Update mineral resource model with new drilling;
• Conduct additional geotechnical, heap leach design and metallurgical test work; and
• Undertake community engagement programs after completion of stakeholder mapping
The Preliminary Economic Assessment was prepared by Global Resource Engineering and SRK Consulting (Canada) Inc. with Terre Lane, QP and Todd Harvey, PhD, QP being the Qualified Persons in charge of its preparation for GRE.
KORE is 100% owner of a portfolio of advanced gold exploration and development assets in California and British Columbia. KORE is supported by strategic investors Eric Sprott and Macquarie Bank who, together with the management and Board own 65% of the basic shares outstanding.