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Shares of Revival Gold (TSXV: RVG) rose 25% Monday morning on an updated resource estimate for its Beartrack-Arnett gold project in Idaho that increased ounces in the indicated category by 56% and in the inferred by 19%.
The project’s updated indicated resource totals 64.9 million tonnes grading 1.01 grams gold per tonne for a contained gold of 2.1 million oz., compared with the 2020 reported estimate of 36.6 million tonnes grading 1.15 grams gold for 1.3 million oz. gold.
Its new inferred resource estimate totals 46.2 million tonnes grading 1.31 grams gold per tonne for a contained gold of 1.9 million oz., compared with a previously reported 47.1 million tonnes grading 1.08 grams gold for 1.6 million oz. gold.
“Revival Gold’s technical progress over the past two years validates our confidence in project geology and the potential we see for Beartrack-Arnett to continue to grow,” CEO Hugh Agro said in a press release.
Located in Lemhi County, the Beartrack and Arnett deposits, which are adjacent to each other and were combined into one project after being bought separately, are situated about 240 km away from Boise, the capital of Idaho.
The project area includes the past-producing Beartrack open-pit mine that produced about 600,000 oz. gold from 1994 to 2000 after which it shut down as price of gold fell below $300 per oz., Revival said.
“Significant infrastructure” from the historic operation remains and the company, which is currently working on a prefeasibility study, hopes to utilize the existing infrastructure to resume gold production in the area.
Within the indicated resource, open pit heap leach contained gold increased by 49%, while open pit mill contained gold increased by 58% the company said.
Mineralization at Beartrack remains open along strike and at depth and remains open in all directions at Arnett. As such, the company plans to initiate 7,000 metres of exploration drilling in late May.
A preliminary economic assessment released in November 2020 outlined a first phase open pit mining and heap leach operation that’s estimated to produce 72,000 oz. gold per year over a seven-year mine life. The study pegged the initial capital investment at C$100 million ($77.8m)and the construction period at one year.
At a 5% discount, the project is expected to generate an after-tax net present value of C$88 million ($68.4m) and an internal rate of return of 25%, using a gold price of $1,550 per ounce.
The project’s resource is largely expected to be exploited by open pit mining methods, except for the Joss, South Pit, and Ward’s Gulch areas, which may see the use of bulk underground mining methods.
The company is expected to acquire a 100% interest in the Beartrack-Arnett gold project by September 2022.
