Quebec-focused explorer
Eastmain Resources Inc (
TSE:ER) says it’s reached a major milestone with the publication of a preliminary economic assessment (PEA) for its Eau Claire gold project, which shows ‘robust’ numbers.
The report shows a combined open pit and underground mine with a life of 12 years, the explorer said.
It also shows that around 71% of the 2018 updated mineral resource is potentially extracted under the plan supported by this preliminary assessment.
"The Eau Claire PEA is our biggest accomplishment and represents a critical milestone in Eastmain's history,” said Claude Lemasson, the president and chief executive.
“These results fully support the advancement of this key project through further pre-development activities on what could become James Bay's next gold mine.
“The PEA displays robust economics, outlining a stable operating profile of 86,100 ounces of gold per annum at attractive cash costs.
“We intend to move Eau Claire along a development track and to aggressively pursue nearby exploration targets with potential to provide additional process plant feed and further improve project economics."
The report envisages a combined open pit and underground exploiting 6,403,000 tonnes of mineralized material at a blended grade of 4.87 g/t (grams per ton) gold for 1,001,000 contained ounces gold over 12 years.
The pre-tax net present value at a 5% discount rate was pegged at C$381mln, with a pre-tax internal rate of return (IRR) at 32%.
Pre-production capital costs, including contingency were put at C$175mln.
The life of mine (LOM) all-in sustaining costs (ASIC) were put at C$746 per ounce of yellow metal.
The PEA assumes a gold price of US$1,250 per ounce and a 12-year mine life (three years as an open pit and ten years underground).
The PEA proposes a conventional truck and shovel open pit operation, followed by ramp access and captive long-hole open stoping in the underground portion of the mine.
Power to the site is to be sourced through an 18 km power line from a substation at the Hydro Quebec Eastmain power dam to the project site. Power consumption is expected to average 7 MW.
The Eau Claire deposit lies in the province of Quebec, around 800 kilometres north of Montreal and 350 km north of Chibougamau and is readily accessible by road.
Eastmain shares in Toronto added 1.85% to C$0.28.