Unigold provides robust PEA for candelone oxide project
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(Kitco News) – Unigold (TSX-V: UGD) today presented the results of the Independent Preliminary Economic Assessment (“PEA”) on its 100% -owned Candelones Oxide project in the Dominican Republic.
The PEA assumes a run-of-river heap leach operation of 5,000 tonnes per day with an average annual payable gold production of 31,000 ounces.
The company said the PEA offers a pre-tax internal rate of return (“IRR”) of 50% and an after-tax IRR of 35%; Net present value before tax (“NPV”) of US $ 50 million and NPV after tax of US $ 34 million. The after-tax refund period is 1.8 years from the start of production. The average annual after-tax free cash flow is US $ 23 million.
The initial capital expenditure is US $ 36 million (including US $ 5 million for EPCM and indirect costs in addition to US $ 5 million for emergency) and all-in sustaining costs are 744 US dollars / Au oz.
The company noted that the economics of the project are compelling enough that it is considered a stand-alone operation providing short-term cash flow as the company continues to develop and assess the larger sulphide resource that it claims. Unigold, offers a longer term development opportunity. .
Unigold is a Canada-based mining exploration company primarily focused on the exploration and development of its gold assets in the Dominican Republic.
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