Liberty Gold's Black Pine Project Returns $3.32 Billion NPV

Liberty Gold (TSX:LGD) has completed a Feasibility Study for its Black Pine Oxide Gold Project in Idaho, US. The study outlines a base-case after-tax net present value (NPV) of $3.32 billion.

The project is expected to produce an average 176,700 ounces of payable gold annually over its 16-year mine life, with a probable mineral reserve of 433.3 million tonnes grading 0.29 grams per tonne gold for 4.04 million ounces.

At a gold price of $3,250 per ounce, the project returns an internal rate of return (IRR) of 60.5% and a two-year payback period. The operation would process an average 74,200 tonnes per day without crushing, screening or agglomeration.

The study also tests the project against different gold prices, with $4.3 billion NPV and a 104.3% IRR at $4,500 per ounce. CEO Jon Gilligan says completion of the study shifts the company’s focus towards preparing the project for execution.