Liberty Gold's Black Pine Project Boasts $2.4 Billion NPV and 60% IRR
Liberty Gold Corp (TSX: LGD; OTCQX: LGDTF) has announced the results of its Feasibility Study for the Black Pine Oxide Gold Project in southern Idaho, USA. The study establishes the project as a large-scale, long-life oxide gold development with a technically straightforward operation requiring no ore crushing, screening or agglomeration. According to the study, the initial capital cost for the project is $411.4 million and it will produce an average of 202,000 ounces of payable gold per year in the first five years of operation.
The Feasibility Study supports a base case after-tax net present value (NPV) of $2.4 billion at a gold price of $3,250 per ounce, with an internal rate of return (IRR) of 60%. The study also shows strong economics across a range of gold prices, including NPV of $4.3 billion and an IRR of 104% at $4,500 per ounce.
The project has a mine life of 16 years, with average payable gold production of 176,700 ounces per year. The initial capital requirement is US$411 million for a large-scale, open-pit, run-of-mine heap leach operation with a 4.04 million ounce Au Mineral Reserve.