Freeman Gold Corp’s proposed US$190 million Lemhi openpit gold project in Idaho, USA, that can produce an average 76,000 ounces of gold for about 11 years at all-in sustaining cash costs (AISC) of US$957/oz maximises the value of the circa-1.2 million-ounce resource while “minimising the footprint and environmental impact” of its planned project, the company says.
Toronto-listed Freeman announced its positive PEA last month and has now filed the NI 43-101 technical report.
It used a US$1750/oz average gold price to calculate an after-tax NPV (5% discount rate) of $212.4 million and IRR of 22.8%.
Freeman wants to increase mill and carbon-in-leach plant throughput from 2.5 million tonnes per annum to 3Mtpa after four years of operation to sustain “high-grade, low-cost” production of more than 80,000oz in the first eight years.
Its “high” average mill head grade is put at 0.88 grams per tonne.
“The results of the PEA demonstrate Lemhi has the potential to become a profitable, low-cost gold producer,” Freeman said.
