Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF) announced what it called “positive” results of an updated independent Preliminary Economic Assessment (PEA) on its Cerro Caliche gold project in Mexico, which showed an enhanced pre-tax net present value, discounted at 5%, of US$84.4 million as well as an improved pre-tax Internal Rate of Return (IRR) of 74.9%.
The exploration and development company said the PEA also estimates life of mine annual average production of 45,000 gold equivalent ounces, at all-in-sustaining costs (AISC) of US$1,333 per ounce of gold equivalent, along with sustaining capital costs of US$7.4 million and a payback period of 2.2 years.
“Using the same resource calculations of the original PEA, we have optimized the mine plan to contemplate commencing production at a lower rate utilizing higher-grade ore, eventually ramping up to potential capacity of 15,000 mtpd (metric tonnes per day) in year three,” Sonoro Gold CEO Ken MacLeod said in a statement.
READ: Sonoro Gold says it has filed an environmental impact statement for its Cerro Caliche gold project in Sonora, Mexico
“The result is a reduction in the estimated initial CAPEX of over 19% and an increase in after-tax NPV and IRR of 29% and 40.4%, respectively,” MacLeod added.
Sonoro Gold noted the updated PEA highlights several opportunities to potentially increase the project’s previously reported economic parameters, as well as potentially lower several identified risks.
It added that based on the same mineral resource estimate contained in the company’s initial PEA, the updated PEA contemplates an optimized mine plan for an open pit, heap leach mining operation with an initial two-year production rate of 8,000 mtpd and an increase to 15,000 mtpd for the remaining life of mine.
As well, Sonoro said about 7,000 meters of additional drilling being completed at Cerro Caliche was not included in the current mineral resource estimate and final assay results are still pending with the new geological data to be included in a further updated resource estimate scheduled to be released in the fall of 2022.
Sonoro Gold is a publicly listed exploration and development company holding the near-development-stage Cerro Caliche project and the exploration-stage San Marcial project in Sonora State, Mexico.
The company has highly experienced operational and management teams with proven track records for the discovery and development of natural resource deposits.
Contact Sean at sean@proactiveinvestors.com