Rua Gold (TSX:RUA) is ready to advance toward a Prefeasibility Study (PFS) for the Auld Creek Gold-Antimony Project in New Zealand, after receiving the results from a preliminary economic assessment (PEA).
The PEA highlights the potential for robust economics from a shallow underground starter mine, supported by access to established infrastructure.
Auld Creek is expected to have an average annual production of 27,000 ounces of gold-equivalent over a 5.5-year mine life. Over the entire life of mine, production is forecast to be around 147,000 ounces of gold-equivalent.
The PEA also highlights a post-tax net present value of US$42 million ($58.5 million), with an internal rate of return of 17% and a payback period achieved in 3.3 years.
Initial capital expenditure is expected to be US$133 million at a cash cost of US$1,440 per ounce of gold and an all-in sustaining cost of US$1,850 per ounce.
CEO Robert Eckford says the PEA highlights the strong cashflow generation, compelling economics, and scalability potential within the Reefton Goldfield.
“This study represents only a portion of the broader district opportunity, with significant upside remaining at depth and along strike,” Eckford says.
“With drilling underway and permitting advancing, we are well positioned to deliver a PFS in Q4 2026 and take advantage of New Zealand’s fast-track approvals permitting process.”
Rua Gold recently initiated a 19,000m infill and extension drill program targeting the establishment of measured resources and the conversion of inferred resources to indicated ahead of the planned PFS. Step out drilling is also being carried out with the aim of extending the inferred resource at depth and northwards, both of which remain open.
Further, the company is conducting metallurgical testing, geotechnical investigations, mine optimisation and trade-off studies, and a detailed process design.
Rua Gold is an explorer, strategically focused on discoveries in New Zealand. The company controls the Reefton District as the dominant landholder in the Reefton Goldfield on the South Island of New Zealand.
Write to Aaliyah Rogan at Mining.com.au
Images: Rua Gold
