Preliminary Economic Assessment
Preliminary Economic Assessment results in November 2018 indicate pre-tax IRR of 51% at a current gold price of US$1250, with a low cost base and strong leverage for higher gold prices. The PEA Fact Sheet can be downloaded here.
Key Economic Parameters
|Cash Flow||US$ millions||441||372|
|NPV 5%||US$ millions||319||264|
|NPV 10%||US$ millions||233||188|
|Initial Capital||US$ millions||184|
|Life of Mine Production||Moz gold||1.1|
|Average Annual Production||oz gold||130,000|
|Payback Period (Mine Life)||years||1.9 (of 8.1 years)|
The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the economic results described in the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Details are reported in press release dated Nov 16, 2018 titled '51% IRR from PEA at TriStar Gold’s Castelo de Sonhos Project’
The PEA has outlined several areas for future work to enhance and continue to de-risk the project. TriStar intends to undertake additional drilling with the aim to further expand mineral resources and increase confidence.