Results from an independent preliminary economic assessment for the Scottie Gold Mine in Canada reveals ‘robust economics and clear growth potential’, says Scottie Resources (TSX-V:SCOT).
The assessment outlines a robust direct ship ore (DSO) development scenario for Scottie, delivering a post-tax net present value ranging from C$215.8 million ($234.82 million) to C$668.3 million at gold prices of US$2,600 to US$4,200 per ounce, respectively.
Scottie reports the assessment also presents the opportunity to use excess capacity at the nearby premier mill through a toll-milling arrangement which could enhance project economics.
Under this scenario, the company says the post-tax NPV increases to C$380.1 million at US$2,600 per ounce and C$831.7 million at US$4,200 per ounce.
Over a seven-year mine life, the Scottie Mine is forecast to produce 65,400 ounces of gold.
The project also demonstrates a post-tax payback period of 1.7 years for the standalone DSO case, and just 9 months under the toll milling opportunity.
CEO Brad Rourke says the preliminary economic assessment highlights a simple, low-capex project.
“The DSO scenario eliminates the need for a mill or tailings facility, streamlining both permitting and construction,” Rourke says.
“In addition, the optionality of toll milling at a nearby facility presents a clear, low-risk development pathway with meaningful upside.
“As we advance engineering and permitting, our successful 2025 drilling campaign and planned 2026 program are expected to convert a substantial portion of the current resource to the indicated category and add new ounces-extending mine life and further strengthening project economics.”
The DSO project is planned to begin with open pit mining at the Blueberry Contact Zone, followed by underground mining at the area, and subsequently at the Scottie Gold Mine.
The Scottie Gold Mine Project consists of 20 mineral claims and 14 Crown granted claims for a total area of 8,534 hectares.
Write to Aaliyah Rogan at Mining.com.au
Images: Scottie Resources
