Rokmaster Resources said that the Revel Ridge polymetallic gold-silver project in Canada entails pre-production capital expenditures (capex) of $436m based on the results from a preliminary economic assessment (PEA) study.
The capex includes a contingency of $62m, said the Canadian mineral exploration company.
The PEA for the Revel Ridge project was undertaken by Ausenco Engineering Canada with the support of Mining Plus Canada Consulting, Knight Piésold, P&E Mining Consultants, and Canenco Consulting.
Situated in the Revelstoke area of southeastern British Columbia (BC), the project will be an underground mining operation.
The mined material will undergo on-site treatment through particle sorting, followed by conventional milling and flotation processes to generate distinct lead and zinc concentrates for sale to third-party smelters.
Additionally, there will be on-site treatment of refractory gold concentrates to produce gold-silver doré. The project will feature an owner-operated, ramp-developed, long-hole stope underground mine.
Expected to have a processing capacity of 2,920 tonnes per day, the project will have a production lifespan of 11.4 years.
Prior to achieving full operational status in Year 1, there are plans for an additional 18 months dedicated to mine ramp access and development, as well as the construction of the process plant and filtered waste management facility.
The PEA capitalises on Revel Ridge’s existing infrastructure, which includes features like all-weather access roads, 3km of underground development, a permitted waste rock storage facility, a complete camp facility, and proximity to the BC Hydro electrical system, among other advantages.
Key points from the PEA include an underground mine with high-grade mineralised material, averaging C$361/t NSR value (diluted). This comprises the Main Zone, with 11.43Mt averaging 3.80 g/t Au, 37.37 g/t Ag, 2.34% Zn, 1.3% Pb (diluted), and the Yellowjacket Zone, with 0.34Mt averaging 8.61% Zn, 2.66% Pb, 65.0 g/t Ag, and 0.07 g/t Au (diluted).
The after-tax net present value (NPV)5% is C$454m with a 21.1% internal rate of return (IRR), based on $1,850/oz Au, $23/oz Ag, $1.26/lb Zn, and $0.9/lb Pb. The after-tax payback period is 3.2 years, discounted at 5%.
Over the course of the 11.4-year production lifespan at the Revel Ridge project, the average annual payable production is projected to be 158,000 ounces of gold equivalent (AuEq) per year. This breaks down to 114,000 ounces of gold (Au) per year, along with 940,000 ounces of silver (Ag), 32.6 million pounds of zinc (Zn), and 19.6 million pounds of lead (Pb).
