The July 31, 2017 feasibility study for the Aurizona Project outlines the design of an open-pit gold mine producing an average of approximately 136,000 ounces of gold per year with an initial 6.5-year mine life, for total life-of-mine production of 885,700 ounces of gold. All-in sustaining costs are estimated at $754/oz of gold produced, putting Aurizona in the lowest quartile of the industry average. Using a base case gold price of $1,250 per ounce, the project demonstrates strong financial returns with an after-tax internal rate of return of 34% ($1,350 per ounce: 42%) and a net present value using a 5% discount rate of $197 million ($1,350 per ounce: $254 million).
Exploration is currently underway with the objective of expanding the resource and reserve base and extending the mine life. Results to date confirm that gold mineralization persists below the westernmost reserve pit and extends at least 350 metres to the west.
The mine produced gold from 2010 to 2015 and significant infrastructure remains at site. All major mine elements are already in place, including a tailings facility and waste dumps, a dedicated power line, camp offices and accommodations, water, roads and communications. As a result, initial capital costs are estimated at $131 million, with life-of-mine sustaining capital estimated at $51 million.