Loncor Gold Inc. (TSX:LN, OTCQX:LONCF) said it has now filed its previously-reported preliminary economic assessment (PEA) of its open pit Adumbi gold deposit at the Imbo project in the Democratic Republic of the Congo (DRC), which showed average annual production of 303,000 ounces at a feed grade of 2.17 grams per tonne (g/t) gold over a 10.3 year mine life.
Also in today's statement, the firm revealed it has been in "preliminary discussions" with potential strategic partners over further advancing its Adumbi and Makapela gold deposits in DRC.
In December, last year, Loncor’s president Peter Cowley had told investors: "The results from the Adumbi PEA demonstrates a robust project with an average of +300,000 ounces of gold per annum over 10 years with low total cash costs and all-in sustaining (AISC) costs of US$852 and US$950 per ounce respectively over the life of the mine (LOM) for the HEP Hybrid power case."
The study was based on an Adumbi indicated resource of 1.88 million ounces of gold (28.185 million tonnes grading 2.08 g/t gold) and inferred of 1.78 million ounces (20.828 million tonnes grading 2.65 g/t gold ) constrained within a US$1,600 per ounce optimised pit shell.
Loncor had said analysis was carried out on two power options at Adumbi, which included a hydroelectric power (HEP) hybrid case and a diesel-only case.
The PEA estimated a pre-tax net present value (NPV), at a 5% discount, of US$895 million and a post-tax NPV of US$624 million for the HEP Hybrid case at a US$1,600 gold price.
READ: Loncor Gold says Adumbi preliminary assessment signals robust project over life of the mine
By using a US$1,760 gold price, it also arrived at a post-tax NPV of US$879 million for the HEP Hybrid case. The study also calculated the average total cash costs of US$852 per ounce over the life of mine and all-in sustaining costs of US$950 per ounce for the HEP Hybrid case.
Based on the positive results of the Adumbi PEA, further work is warranted, said Loncor, noting that there was "excellent" exploration potential to further increase the resources at Adumbi and within the Imbo project area.
"Additional feed for the Adumbi processing plant could also come from Loncor's 100%-owned high grade Makapela deposit, where Indicated Mineral Resources of 2.20 million tonnes grading 8.66 g/t Au (614,200 ounces of gold) and Inferred Mineral Resources of 3.22 million tonnes grading 5.30 g/t Au (549,600 ounces of gold) have been outlined to date with the high-grade material potentially being able to be transported economically to Adumbi," the company added.
Also at Adumbi, further metallurgical testwork including additional flotation and petrographic studies was recommended to confirm recoveries, reagent consumptions and to optimize the flowsheet design.
Drilling started on the Adumbi deposit in 2010 and so far, 74 core holes have been drilled.
Loncor has been carrying out a drilling program at the Adumbi deposit in a bid to outline additional resources. The Makapela project (which is 100%-owned by Loncor and is located approximately 50 kilometres from the Imbo Project) has an indicated mineral resource of 614,200 ounces of gold (2.20 million tonnes grading 8.66 g/t gold) and an inferred mineral resource of 549,600 ounces of gold (3.22 million tonnes grading 5.30 g/t gold).
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