Talamore Mining Clears Roadblock for Coffee Gold Project in Yukon

Talamore Mining has secured a critical road permit for its Coffee gold project in Yukon, a key step towards construction. The company, backed by a $638-million project financing package, plans to build an all-season road spanning 214 km. The road will cost approximately $71.3 million, according to a preliminary economic assessment.

The permit allows Talamore to construct about 29 km of new road linking existing sections of the Northern Access Route from Dawson City. About 180 km already exists. National Bank of Canada mining analyst Rabi Nizami said the update is 'positive' for Talamore and provides a supportive readthrough for the whole Yukon mining industry.

Coffee ranks among Canada's dozen largest undeveloped primary gold projects by measured and indicated resources. The project has an estimated initial capital cost of $983 million, with an after-tax net present value at a 5% discount rate of US$2.3 billion. At a long-term gold price of US$3,620 per oz., the study has a 48% internal rate of return and a 1.7-year payback period.