The September 2016 pre-feasibility study for the Aurizona Project outlined the design of an open-pit gold mine producing an average of 150,000 ounces of gold per year for the first five years, with an initial 6.5-year mine life and all-in sustaining costs estimated at $708/oz of gold produced. 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: 41%) and a net present value using a 5% discount rate of $201 million ($1,350 per ounce: $256 million).
Exploration is currently underway to test a number of near-mine targets with the objective of expanding the resource and reserve base and extending the mine life.
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 $146 million, with life-of-mine sustaining capital estimated at $47 million.