PFS Summary
The Pre-Feasibility Study was conducted by GE21 Consultoria Mineral Ltda ("GE21") of Belo Horizonte, Brazil, and Piteau Associates of Sandton, South Africa, both of whom are independent of TriStar.
Details are reported in the press release dated October 5th, 2021 titled ‘TriStar Gold Announces Positive PFS with 1.4 Moz Gold Reserves and Pre-Tax 33% IRR and $400 Million NPV' and NI43-101 report dated October 4th, 2021 titled ‘Castelo de Sonhos Project Pre-Feasibility Study’ filed on Sedar.com.
Key Economic Parameters
Pre-Feasibility Study results in October 2021 indicate pre-tax IRR of 33% at a gold price of US$1550, with a low-cost base and strong leverage for higher gold prices.
The base case economics are calculated on a long-term gold price of US$1,550/oz, and a foreign exchange rate of US$1 = BRL5.0. The economics include the effect of the project royalties, including NSR royalties totaling 3.5% and Brazilian federal gross royalty of 1.5%.
Parameter |
Unit |
Pre-tax |
Post-tax |
Cash Flow |
US$ (Millions) |
635 |
524 |
IRR |
% |
33 |
28 |
NPV (5%) |
US$ (Million) |
399 |
321 |
NPV (7%) |
US$ (Million) |
332 |
263 |
Cash Cost |
US$/oz |
877 |
|
AISC |
US$/oz |
900 |
|
CAPEX |
US$ (Million) |
261 |
|
Life of Mine Production |
Moz Au |
1.3 |
|
Payback Period (Mine Life) |
Years |
2.8 |
Notes: Estimated All In Sustaining Costs per ounce of gold produced is a Non-GAAP measure that is equal to the total of site mining costs, site and corporate G&A costs, royalties and production taxes, realized gains/losses on hedging transactions, community and permitting costs relating to current operations, refining costs, site based non-cash remuneration, inventory write-downs, stripping costs, byproduct credits, reclamation costs, and sustaining costs related to exploration and studies, capital exploration, capitalized stripping and underground mine development, and capital expenditures, divided by the estimated total ounces of gold produced during the life of the mine. Cash costs per ounce of gold produced is also a non-GAAP financial measure and is equal to on-site mining and processing costs, on-site general and administration costs, realized gains and losses on hedges due to operating costs, community and permitting costs related to current operations, third party refining and transportation costs, non-cash site remuneration costs, stripping costs, stockpile and inventory write-downs, exploration costs related to current operations and by-product credits all divided by ounces of gold cost produced.
Annual Gold Production and AISC over life-of-mine:
|
Average Annual |
Cash Cost US$/oz |
AISC |
Phase 1 (Year 1 – 6) |
146 |
821 |
854 |
Phase 2 (Year 7 – 11) |
91 |
983 |
990 |
LOM |
121 |
877 |
900 |