Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF) said it has filed a technical report titled "Updated Preliminary Economic Assessment of the Cerro Caliche Project, Sonora, Mexico” with an effective date of May 9, 2022.
The updated Preliminary Economic Assessment (PEA) contemplates an optimized mine plan for an open pit, heap leach mining operation with an initial two-year production rate of 8,000 metric tonnes per day (mtpd) and an increase to 15,000 mtpd for the remaining life of the mine.
Approximately 7,200 meters of additional drilling recently completed at Cerro Caliche was not included in the current mineral resource estimate and will be included in an updated resource estimate scheduled to be filed in the fall of 2022.
READ: Sonoro Gold unveils final drill results from Phase 4 campaign at Cerro Caliche gold project in Mexico
“Since drilling resumed in November 2021, the company has announced multiple high-grade intercepts and expansions of several known mineralized zones in the southwestern region of the property. The potential economic impact of the updated resource on the proposed heap leach mining operation will be contemplated in a further technical report,” Sonoro Gold said in a statement.
Highlights of the PEA include:
- Pre-Tax net present value discounted at 5% (NPV5) of US$84.4 million
- Pre-Tax Internal Rate of Return (IRR) of 74.9%
- After-Tax NPV5 of US$53.5 million
- After-Tax IRR of 45.6%
- Gold recovery of 74% and silver recovery of 27%
- 7-year LOM (Life of mine) with 344,500 ounces (oz) of gold equivalent (AuEq)
- LOM annual average production of 45,000 oz AuEq (Years 1-7)
- Years 1 to 3 annual production of 46,000 oz AuEq at 0.58 g/t AuEq
- Initial CAPEX (capital expenditure) costs $26 million, including US$3 million in contingency
- Sustaining capital costs of $7.4 million
- Cash (1) costs of $1,206/oz AuEq
- AISC (2) of $1,333/oz AuEq
- Payback period of 2.2 years
The PEA was prepared by D.E.N.M. Engineering Ltd. of Burlington, Ontario, with David Salari, P.Eng. as the lead author while William Lewis, P.Geo., of Micon International Limited of Toronto, Ontario was the qualified person responsible for the mineral resource estimate.
Sonoro Gold is a publicly listed exploration and development company holding the near development stage Cerro Caliche project and the exploration stage San Marcial properties in Sonora State, Mexico.
Contact the author at jon.hopkins@proactiveinvestors.com