ROMERO PROJECT PEA Highlights|
GoldQuest Mining Corp. (GQC: TSX-V) is a Canadian based exploration and development company focused on gold and copper in the Dominican Republic. With a Board and Management Team that have previously developed a mine still operating in the Dominican Republic, the Company is focused on developing its 100% owned Romero Project, and further exploring its Tireo Property.
- Pre-tax net present value ("NPV") of $355 million based on a 6% discount rate ($219 million NPV after-tax).
- Pre-tax internal rate of return ("IRR") of 46% (34% IRR after tax).
- Life-of-mine ("LOM") all-in sustaining costs ("AISC") of $572/oz gold equivalent ("AuEq") payable.
- Payback of capital within 2.7 production years.
- Pre-production capital expenditure estimate of $143 million, plus $92 million of sustaining and closure capital over LOM totaling $235 million.
- A nine-year underground mine at an average production rate of 912,500 tonnes per year (2,500 tonnes per day) with an average production of 117,000 AuEq oz recovered (NOTE) per year.
- LOM production to concentrate is a total of 1.1 million ounces of AuEq consisting of 750,000 ounces of gold, 133.8 million lbs. of copper and 526,000 ounces of silver.
- Total metal recoveries consisting of 75% for gold and 96.8% for copper to a single concentrate for sale to copper smelters. The concentrate grade is expected to contain 20% copper, and 76.9 g/t gold, with no perceived penalty elements.
- Total LOM net smelter return (NSR) revenue of $1.2 billion, an undiscounted pre-tax cash flow of $530 million ($343 million post-tax) from processing 7.7 million tonnes with a diluted grade of 5.39 g/t AuEq (4.02 g/t and 0.81% copper) with a NSR of $152 per tonne and cash operating costs of $53 per tonne.
- Of the mineral resources used in the Revised PEA mine plan, 86% (6.6 million tonnes) are from the indicated resource category and 14% (1.1 million tonnes) are from the inferred resource category. The remaining 12.8 million tonnes in the indicated category, and 8.9 million tonnes in the inferred category, either surround the planned Romero mine, or are in Romero South and are available for extraction in the future.
- The Revised PEA contemplates an environmentally sensitive approach, including a small surface footprint and no use of cyanide on site, seeking to minimize the impact on the environment and the local communities. Previous studies recognized significant values for the hydro electric potential for the mine locale, which are not included in the Revised PEA and which provide significant upside potential.
NOTE: AuEq oz recovered is calculated by the following: Au oz recovered + ((Cu lbs recovered * $2.90/lb) + (Ag oz recovered * $17/oz)) / $1,225oz)
JDS Energy & Mining Inc. is a Vancouver based mining consulting company which has extensive experience in mining and development studies. JDS assembled a multi-disciplinary international team of experts to conduct the Revised PEA.
GoldQuest is translating the Revised PEA into Spanish in order to submit it to the Dominican Ministry of Energy and Mining in order to start the mining permit application process.
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