16th Jan 2020 16:16
(Alliance News) - Cora Gold Ltd on Thursday said a study has validated the future economic potential of the Sanankoro gold project located in southern Mali.
The scoping study estimates a 84% internal rate of return for the project at USD1,400 gold price and net present value of the project of USD30.9 million at an 8% discount rate.
Average gold production from the project is predicted at over 45,000 ounces per year at an all in sustaining cost of USD942 per ounce. Pre-production capital expenditure is estimated at USD20.6 million and free cash flow generation of USD19 million.
Cora Chief Executive Bert Monro said: "This scoping study shows Sanankoro has the potential to be a highly profitable standalone oxide mine, delivering a high IRR and short capex payback, with an annual average free cash flow of over USD19 million at a USD1,400 gold price".
"The key will be to drill out more oxide resources to extend the mine life and sustain the cash flow well beyond this maiden study. To date, we have only drilled 25% of the total strike length of the potential mineralised zones identified on the permit area. Drilling is currently ongoing and SRK's defined exploration target remains 1 to 2 million ounces of gold to a depth of just 100 metres," Monro added.
Cora Gold shares were up 4.0% at 6.50 pence each in London on Thursday afternoon.
By Tapan Panchal; [email protected]
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