1911 Gold Corp (TSX-V:AUMB, OTCQB:AUMBF, FRA:2KY) has released an independent preliminary economic assessment for its True North Gold Project in Manitoba that supports a low-capital restart with strong returns and production targeted for 2027.
The study outlined an 11-year underground mining operation producing about 58,100 ounces of gold per year at steady state, according to 1911.
At a long-term gold price of US$3,000 per ounce, the project carries an after-tax net present value of C$391 million and an internal rate of return of 105%, with a payback period of 2.2 years, the company said. At a constant gold price of US$4,800 per ounce, the after-tax NPV rises to C$998 million, with payback in roughly one year.
The mine plan is based on the use of existing, fully built and permitted infrastructure, including underground workings, shafts and a processing and tailings facility. 1911 Gold estimates the replacement value of that infrastructure at more than C$400 million.
Initial capital expenditures are estimated at C$59.2 million, with additional capital of C$46.7 million during the first two years of ramp-up and sustaining capital of C$367.2 million over the life of mine.
Total payable gold production over the mine life is estimated at about 527,100 ounces, generating C$545 million in undiscounted after-tax free cash flow, the company said. Cash costs are estimated at US$1,390 per ounce, with all-in sustaining costs of US$1,897 per ounce.
Gold production is expected to begin in the first half of 2027, with test mining planned for the second half of 2026.
“The delivery of this PEA marks another defining moment for 1911 Gold, outlining a highly efficient, low-capital path to the first phase of production with robust economics and exceptional returns,” CEO Shaun Heinrichs said in a statement.
“This PEA proves that True North is not just a restart story, but is the cornerstone of a district-scale gold project in one of Canada's premier mining jurisdictions.”
The study assumes the use of existing infrastructure and a mining method aligned with the ore body, lowering capital needs and technical risk, Heinrich noted. Production would be ramped up through a staged development plan.
COO Eric Vinet said the study confirms the economic viability of restarting operations at True North and highlighted opportunities to further improve costs by centralizing underground haulage and hoisting from nearby zones.
1911 Gold added that recently discovered zones adjacent to existing infrastructure were not included in the PEA and could offer future production growth.
The company said it will host a webinar on Tuesday to discuss the PEA results and its planned restart strategy.