Chart: Which countries are falling behind in gold mine production
India tops the global ranking with demand nearly 50 times that of its mined supply.
Shares in Newstrike Capital (CVE:NES) jumped on Monday after the company released the results of a National Instrument 43-101 Preliminary Economic Assessment of its Ana Paula project located in the Guerrero gold belt, Mexico.
In afternoon trade the Vancouver-based junior was changing hands at $1.06, up 8.2% on the Toronto Venture Exchange, off its $1.10 high for the day. Around 140,000 shares in the $121.8 million company had traded, almost five times the usual daily average.
The counter is up a whopping 53% year to date as it advances Ana Paul where it has ownership of over 1,000 hectares and makes other discoveries in Mexico’s Guerrero gold belt.
Newstrike bought Ana Paul from fellow Goldcorp in June 2010. Vancouver-based Goldcorp owns the producing Los Filos project in the same district.
Base Case at $1,300 Au & $20 Ag per ounce
- Pre-tax NPV@5% of $405.3 million, IRR of 47.5% with a 2.0 year payback
- After-tax NPV@5% of $232.1million, IRR of 32.8% with a 2.4 year payback
- Initial capital costs of $163.9 million (Total life-of mine (“LOM”) – $219.7 includes sustaining/closure costs of $55.8 million and contingency costs of $36.2 million)
- Open pit mine with 6,000 tonne per day (“tpd”) gravity/flotation/CIL process plant
- Cash costs of $527/ oz gold, $486/oz gold Net of By-Product credits
- All-in sustaining costs (“AISC”) of $567/oz gold, $526/oz gold Net of By-Product credits
- Average annual production of 116,000 gold ounces and 239,000 silver ounces over a 8.2 year mine life
- LOM average head grades of 2.24 g/t gold and 6.89 g/t silver
- LOM gold and silver recoveries of 75% and 50%, respectively
- LOM strip ratio of 2.60 to 1 of waste to mineralized material
“This PEA supports our view Ana Paula is one of the best development-stage gold projects in Mexico. It is a straightforward open pit mine, utilizing conventional milling and flotation concentration with robust economics. The combination of high gold grades, low capital requirements with low operating costs makes this a compelling development project,” commented Richard Whittall, President and CEO of Newstrike. “With a positive PEA in hand, our next step is to evaluate the significant underground potential at Ana Paula and to support high priority exploration targets in this prolific gold belt.”
