Benchmark Metals Inc said it has now filed the inaugural preliminary economic assessment (PEA) for its flagship Lawyers gold-silver project in British Columbia, which the company says, outlines a "robust open pit mining operation with base case, attractive economics that has potential for additional gold-silver ounces and improved economics".
The report, which now has some enhanced metrics over initial results reported in August, pegs the pre-tax net present value (NPV) at C$939 million, an internal rate of return (IRR) of 31.4% and a two- year payback.
The pre-tax net operating income was put at around C$2.16 million.
READ: Benchmark announces positive PEA results for its Lawyers gold-silver project in British Columbia
"The company is now exploring opportunities to enhance and improve the PEA," said John Williamson, Benchmark CEO in statement.
"The PEA was based on open pittable resources only, we see opportunities to add higher-grade ounces below the pits through underground mining methods that could be accessed in parallel to surface mining operations.
"A significant number of underground ounces are clearly demonstrated by existing drill results defined to the Indicated and Inferred category. The project has potential for more ounces and improved economics."
Total resource production was put at 46.7 million tonnes over a 12-year mine life, with average annual production of 163,000 gold-equivalent (AuEq) ounces.
The initial capital to build the project was pegged at C$484 million, including C$72.8 million in contingency.
The all-in-sustaining costs (AISC) were put at US$786 per ounce of gold (net of by-products).
Benchmark Metals Inc is advancing its wholly-owned Lawyer's gold-silver project in the prolific Golden Horseshoe of northern British Columbia. The property consists of three mineralized deposits, which remain open for expansion, in addition to over 20 new target areas along the 20 kilometre (km) trend.
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