The strong gold price is underpinning robust economics of one of Ecuador’s five strategic mining projects, with an updated feasibility study calculating the Loma Larga gold project’s aftertax net present value (NPV) at $454-million and its internal rate of return (IRR) at 28.3%.
Developer INV Metals this week announced the results of the updated feasibility study, which incorporates the relocation of the plant infrastructure and tailings facility near the proposed mine site, updated capital and operating cost estimates and current mineral resources and reserves.
CEO Candace MacGibbon reports that the capital and operating costs have not changed materially since the results of the previous feasibility study in January 2019, but notes that the gold price environment has strengthened with the updated study working on a long-term price of $1 400/oz.
This compares with a $1 250/oz price used in the 2019 study, which calculated an aftertax NPV of $356-million and an IRR of 24.7%.
Loma Larga is projected to be a low-cost operation with expected life-of-mine (LoM) cash costs of $559/oz, all-in sustaining costs of $627/oz, and all-in costs of $789/oz.
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