Getchell Gold (CSE:GTCH) reports a US$1.004 billion ($1.43 billion) pre-tax net present value (NPV) for its Fondaway Canyon Gold Project in Nevada, US based on its most recent preliminary economic assessment (PEA).
The report outlines an open-pit mining operation processing 12,000 tonnes per day over a 10.1-year mine life. It also contemplates producing a ‘high-grade’ concentrate for sale to a third-party refinery for pressure oxidation or roasting followed by cyanidation.
Based on a US$3,200 per ounce gold price assumption, the PEA demonstrates a pre-tax internal rate of return (IRR) of 58.8% and a payback period of 1.5 years. After-tax NPV reaches US$905 million with a 53.1% IRR.
President Mike Sieb says the PEA demonstrates the potential for a ‘robust’ economic open pit mining operation producing 150,000 ounces of gold per year.
“This would likely place Fondaway Canyon in the top 10 mining operations in Nevada,” Sieb says.
“Moreover, the mineralisation remains open for expansion with continued drilling success aiming to further enhance the mine model and extend the operation’s longevity.”
The mine plan targets 1.52 million ounces (Moz) of gold production over the life of mine, representing a 28% increase compared to the company’s 2025 PEA. Average annual gold production is forecast at 150,000oz with an 80% recovery rate to sold metal.
Total capital costs are estimated at US$265.3 million, including US$188.4 million initial capex and US$76.9 million in capitalised stripping over four years.
Meanwhile, life-of-mine operating costs average US$1,373 per ounce produced, with total cash costs of US$1,740 per ounce including transportation, refining charges, and royalties.
The operation will process 42.8 million tonnes (Mt) of ore at an average grade of 1.38 grams per tonne (g/t) gold (Au), with a strip ratio of 6.9:1 waste-to-processed material using a 0.41g/t Au cut-off grade.
Sensitivity analysis shows strong leverage to the gold price, with a high-case scenario at US$4,000 per ounce delivering a pre-tax NPV of US$1.733 billion and an IRR of 99.1%.
The PEA utilises mineral resources from the Central Area only, representing approximately 68% of the global mineral resource currently defined at Fondaway Canyon. The pit shell contains 18.8Mt of indicated mineral resource at 1.46g/t Au and 24.1Mt of inferred mineral resource at 1.32g/t Au.
The company plans additional metallurgical testwork to optimise grind size and the flotation process, alongside defining dry stack tailings processes. A technical report will be filed on SEDAR within 45 days.
Getchell Gold is a Nevada-focused gold and copper explorer dedicated to its Fondaway Canyon asset.
Write to Paula Fabe at Mining.com.au
Images: Gatchell Gold
