Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF, FRA:23SP) announced that it has filed an updated technical report outlining a revised mineral resource estimate and preliminary economic assessment (PEA) for its Cerro Caliche gold project in Sonora, Mexico.
The report evaluates the potential for an open-pit, heap-leach mining operation with an estimated 10-year life of mine.
According to the assessment, the project could begin with a processing rate of 12,000 tonnes per day during its first year, increasing to 16,000 tonnes per day for the remainder of operations.
The study projects total gold equivalent production of approximately 459,000 ounces over the life of the mine, with average annual output of about 46,000 ounces.
Financial projections in the PEA indicate a pre-tax net present value (NPV), discounted at 8%, of $360 million and an internal rate of return (IRR) of 65%.
After-tax estimates show an NPV of $224 million and an IRR of 50%. The projected payback period is approximately 1.7 years.
Initial capital expenditures are estimated at $83 million, including contingency costs, while sustaining capital over the life of the project is projected at $26 million. The study estimates cash operating costs at $1,842 per ounce of gold equivalent, with all-in sustaining costs of $1,902 per ounce.
Metallurgical assumptions include a gold recovery rate of 72% and silver recovery of 27%. The economic model is based on assumed prices of $3,500 per ounce of gold and $48 per ounce of silver.
The updated mineral resource estimate draws on 46,765 metres of drilling across 419 drill holes.