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. Continue Reading →