Value Through Gold

projects
ADVANCING CONSTRUCTION OF THE HIGH-GRADE BRUCEJACK GOLD MINE
COMMERCIAL PRODUCTION TARGET 2017

Updated Feasibility Study for Brucejack Project

06/19/2014

The updated Feasibility Study completed for the Brucejack Project confirmed positive economics and outlined an increase in the gold grade. Highlights from the Feasibility Study include:

  • Increase in Mineral Reserve gold grade:
    • Valley of the Kings Proven and Probable Mineral Reserves of 6.9 million ounces of gold (13.6 million tonnes grading 15.7 grams of gold per tonne)
    • West Zone Proven and Probable Mineral Reserves of 0.6 million ounces of gold (2.9 million tonnes grading 6.9 grams of gold per tonne);
  • Gold and silver recoveries of 96.7% and 90.0% over mine life;
  • Mine life of 18 years producing an estimated 7.27 million ounces of gold;
  • Average annual production of 504,000 ounces of gold over the first 8 years and 404,000 ounces of gold over mine life;
  • Estimated project capital cost, including contingencies, of US$746.9 million;
  • Average operating costs of C$163.05/tonne milled over mine life;
  • Base case economics: At US$1,100/ounce gold, US$17/ounce silver and exchange rate of 0.92 US$/C$, Brucejack has a pre-tax net present value (“NPV”) at a 5% discount of US$2.25 billion (US$1.45 billion post-tax), a pre-tax internal rate of return (“IRR”) of 34.7%, and a pre-tax payback period of 2.7 years;
  • Alternative high case economics: At US$1,400/ounce gold, US$21/ounce silver and exchange rate of 0.92 US$/C$, Brucejack has a pre-tax NPV at a 5% discount of US$3.54 billion (US$2.28 billion post-tax), a pre-tax IRR of 47%, and a pre-tax payback period of 2 years.

For the news release on the updated Feasibility Study dated June 19, 2014 click here.

To view the complete Feasibility Study and Technical Report dated June 19, 2014 click here.