Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF) has announced positive results of an independent Preliminary Economic Assessment (PEA) on its Cerro Caliche gold project in Mexico, which demonstrates the potential viability for a nine-year life of mine (LOM), open pit, heap leach mining operation with an initial two-year production rate of 4,000 metric tonnes per day (mtpd) and an increase to 12,000 mtpd for the remaining LOM.
The explorer and project developer said the PEA estimates LOM annual average production of 33,000 ounces of gold equivalent at 0.45 g/t AuEq, with all-in-sustaining costs (AISC) of US$1,395 per ounce of gold equivalent.
"To date, only 30% of Cerro Caliche’s known mineralized zones have been mapped and assayed," Sonoro Gold chairman John Darch said in a statement.
"In addition to the upcoming targeted infill drilling program at El Colorado and Guadalupe vein zones where our May 2022 drilling campaign demonstrated multiple high-grade ore shoots, we recently identified future expansion targets in the northwest region of the property," he added.
Darch also noted the campaigns will proceed alongside the proposed development of the mining operation and have been designed to materially expand the project’s oxide gold mineralization and potentially enhance the overall economics of the project.
As well, Sonoro said the PEA showed a pre-tax net present value (NPV), discounted at 5%, of US$71.4 million along with a pre-tax Internal Rate of Return (IRR) of 59%.
The company added that the PEA estimates initial CAPEX costs of US$15.5 million, including US$1.83 million in contingency, along with sustaining capital costs of US$15.5 million with a payback period of 2.9 years.
Sonoro Gold is a publicly listed exploration and development company holding the development-stage Cerro Caliche project and the exploration-stage San Marcial project in Sonora State, Mexico.
Contact Sean at sean@proactiveinvestors.com