Study gives White Gold nearly C$2B value for 9-year mine in Yukon

A preliminary economic assessment (PEA) for White Gold’s (TSXV: WGO; US-OTC: WHGOF) namesake site positions it among Yukon’s top undeveloped yellow metal projects by economics and returns, with its C$1.9 billion value almost double the initial costs. Shares surged.Discounted at 5%, the PEA gives White Gold a post-tax net present value of C$1.9 billion and an after-tax internal rate of return of 38% at initial capital costs of C$1 billion and a 1.7-year payback period, the company reported Monday. However, its $3,600-per-oz. gold assumption is considerably higher than that of its peers. The project is about 95 km south of Dawson City.“Our maiden PEA is a significant milestone for White Gold,” CEO David D’Onofrio said in a release.“Even more exciting is the growth potential of the White Gold project based on previous and ongoing drilling not included in the PEA, future drilling and the substantial potential of our underexplored truly district scale land package within the White Gold district,” where investment has been significant, D’Onofrio added.Top tier economicsThe study puts White Gold among the Yukon’s top three undeveloped gold projects by overall economics, behind Snowline Gold’s (TSXV: SGD; US-OTC: SNWGF) Valley and Fuerte Metals’ (TSXV: FMT; US-OTC: FUEMF) Coffee projects.White Gold shares jumped more than 10% to C$2.15 apiece on Monday morning in Toronto, valuing the company at about C$434.7 million. The stock has traded in a 12-month range of 42¢ to $2.38.188,000 annual ouncesThe study estimates the open-pit project could produce 188,000 oz. annually over a nine-year life at all-in sustaining costs of $1,480 per ounce.The mine plan incorporates the Golden Saddle, Arc, Ryan’s Surprise and VG deposits, which represent about 60% of White Gold’s total resource estimate outlined in a report from one year ago.That resource gives the project 35.1 million indicated tonnes grading 1.53 grams gold per tonne for 1.73 million oz. and 32.3 million inferred tonnes at 1.22 grams gold for 1.26 million ounces. The estimate positions it as one of the largest deposit packages in Yukon.Though White Gold is in an historical hot spot for yellow metal mining, the project isn’t yet road accessible. The company proposes to link White Gold with the planned 214-km Northern Access Route (NAR) from Dawson City to neighbouring properties. Fuerte Metals awarded Cobalt Construction a contract to build the NAR in March and the company will partner with the Tr’ondëk Hwëch’in First Nation on the project. White Gold is about 33 km north of Coffee.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com