Cartier Resources Inc. (TSX-V:ECR) shares climbed 31% to $0.175 on Thursday after the advanced gold project exploration company revealed the results of a Preliminary Economic Assessment (PEA) on the Chimo Mine Project located in Quebec’s Val-d'Or mining camp.
Highlights included an estimated post-tax net present value (NPV), using a 5% discount rate, of C$388 million, an internal rate of return (IRR) of 20.8%, and Capex of C$341 million.
Cartier also noted the PEA forecasted average annual production of 116,900 gold ounces over a 9.7-year mine life at average all-in sustaining costs of US$755 per ounce.
The PEA presumes a long-term gold price of US$1,750 per ounce.
“Two drills are in operation on the property and the results continue to increase the size of the gold zones with a view to continuing to increase the project's resources,” Cartier Resources CEO Philippe Cloutier said in a statement.
“Strategic solutions are being studied to further push the development of the project,” he added.
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