A preliminary economic assessment (PEA) on Osisko Mining’s (TSX: OSK) Windfall project in Quebec’s James Bay region outlines a 3,100 t/d two-ramp underground mine with a process facility that would produce an average of 238,000 gold oz. a year over an 18-year life. The gold development company is targeting first production from the gold deposit by 2024.
In its first seven years, Windfall would generate an average of 300,000 gold oz. annually at all-in sustaining costs of US$610 per oz., producing a peak of 328,000 oz. in year six.
Based on an initial capital outlay of $544 million that includes contingency, the after-tax net present value estimate for the project comes in at $1.5 billion, using a 5% discount rate and US$1,500 per oz. gold, with a 39.3% internal rate of return and a 2.2-year payback.
“The sum of our work to date outlines the very strong base-case for a significant and highly profitable new gold mine in Québec,” John Burzynski, Osisko Mining CEO, said in a release, adding that Osisko believes the “highly positive PEA is conservative.”
Burzynski outlines potential upside to the economic scenario from the inclusion of high-grade infill results received since the November 2020 cut-off for the February 2021 resource update and from upgrades of inferred resource ounces to the measured and indicated categories.
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