MONTREAL, July 05, 2018 (GLOBE NEWSWIRE) -- ALGOLD RESOURCES LTD. (TSX-V:ALG) (the “Corporation”) today announced that it has filed a technical report entitled Technical Report for the Preliminary Economic Assessment of the Tijirit Project in Mauritania (the “Report”) dated July 4, 2018. The Report supports the disclosure made in Algold’s press release issued on May 22, 2018 entitled Algold Announces Positive Preliminary Economic Assessment for the Tijirit Gold Project. There are no material differences in assumptions and estimates contained in the Report from those disclosed in the news release. The Report is available on Sedar (www.sedar.com) and on the Corporation’s website (www.algold.com).
Highlights of the Tijirit PEA*
(All monetary amounts are in US dollars unless otherwise indicated.)
- Financial Returns: Project net present value (“NPV”) of $94.9M at an 8% discount rate with an internal rate of return (“IRR”) of 28.4% and Corporate after-tax NPV of $69.0M at an 8% discount rate with an IRR of 23.5% , using a gold price of $1,250 per ounce.
- Revenue: Total revenue derived from the sale of the gold for the life of mine (“LOM”) was estimated at $717.4M.
- CapEx: Pre-production direct capital cost of $96.4M, in addition to indirect costs of $31.2M and a contingency allowance of $17.9M. Total sustaining and expansion CapEx of $47.1M over the mine life including the Phase II expansion in year 4.
- Phase I: 1,018 million tonnes per year for a period of four (4) years with an average annual production rate of 104,500 ounces of gold.
- Phase II: 1,642 million tonnes per year for the three (3) following years with an average annual production rate of 53,000 ounces of gold.
- Cash Cost: Average cash cost of $475 per ounce during Phase I and $893 per ounce during Phase II
- Mine Life: 7.1 years
- Payback Period: 1.8 years (after-tax)
Summary of PEA Results
|Free Cash Flow||170.2||134.3||MUS$|
|Payback Period 1*||1.6||1.8||years|
|1 Does not include ramp-up period|
*Cautionary Statement NI 43-101: The PEA was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects. Readers are cautioned that the PEA is preliminary in nature. It 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, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
This press release has been reviewed for accuracy and compliance under National Instrument 43-101 by the following Qualified Persons as defined by NI 43−101 Standards of Disclosure for Mineral Projects. Each Qualified Person has reviewed or verified the information for which they are individually responsible.
- Guy Saucier, P.Eng. (OIQ 37711), Algold’s Tijirit Project Director and Qualified Person under NI 43-101 for Algold content of the press release.
- Patrick Perez, Principal Mine Engineer, P. Eng. (APEGS #16131), responsible for the mining aspects and Martin Saint-Amour, Principal Cost Engineer, P.Eng.(OIQ 116377), responsible for the overall capital cost estimates, both from DRA/Met-Chem and Independent Qualified Persons, under NI 43-101.
- Yann Camus, Mineral Resources Engineer, P.Eng. (OIQ) from SGS Geostat, and Independent Qualified Person under NI 43-101, responsible for the mineral resource estimate with an effective date of January 19, 2018.
- Thomas Zwirz, Senior Study Manager, P.Eng (OIQ 501783, 9053823 PEO), responsible for the overall study management and Tommaso Roberto Raponi, P.Eng., Senior Mineral Processing Specialist, responsible for the process aspects, both from Ausenco and Independent Qualified Persons under NI 43-101.
Algold Resources Ltd is focused on the exploration and development of gold deposits in West Africa. The board of directors and management team are seasoned resource industry professionals with extensive experience in the exploration and development of world-class gold projects in Africa.
Algold is developing the Tijirit Gold Project, which represents an area of more than 750 km2, comprise of the Tijirit Exploitation License of 306 km2 and of the Tijirit East Exploration License of 460 km2, situated approximately 25 kilometers southeast of the Tasiast gold mine. Exploration is being carried out on the Eleonore, Sophie I, Sophie II-III, Lily and Salma zones.
CAUTIONARY LANGUAGE REGARDING FORWARD-LOOKING INFORMATION
This press release contains and refers to forward-looking information based on current expectations. All other statements other than statements of historical fact included in this release are forward-looking statements (or forward-looking information). The Corporation's plans involve various estimates and assumptions and its business is subject to various risks and uncertainties. For more details on these estimates, assumptions, risks and uncertainties, see the Corporation's most recent Annual Information Form and most recent Management Discussion and Analysis on file with the Canadian provincial securities regulatory authorities on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and there can be no assurance that such statements will prove to be accurate. Forward-looking statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements that are included herein, except in accordance with applicable securities laws.
For further information, please contact:
Algold Resources Ltd.
1320, boul. Graham, bureau 132, Mont-Royal, Québec, H3P 3C8, www.algold.com
|Benoit LaSalle, FCPA, CPA, FCA||Alex Ball|
|Chairman and Chief Executive Officer||Executive VP, Finance and Corporate Development|
|+1 (514) 951-4411||+1 (647) 919 2227|