Tuesday 29th September 2020

Resource Clips

Auriga reports updated PEA for Manitoba Property

Resource Clips - essential news on junior gold mining and junior silver miningAuriga Gold Corp TSXV:AIA announced a positive updated preliminary economic study for its Maverick gold project in Manitoba. The report estimates a 7.5-year mine life at a processing rate of 750 tonnes per day to produce a total of 348,000 ounces gold, with average production costs per gold ounce of $950. At a base-case gold price of US$1,400 per ounce, the project is calculated to have a pre-tax net present value of $79.6 million, with a pre-tax internal rate of return of 84%. Pre-tax payback is anticipated to be reached in 20 months of processing. Capital costs are estimated at $18.1 million, which includes a 20% capital cost contingency.

President/CEO Richard Sutcliffe commented, “We are pleased with the updated PEA on a proposed open pit and underground mining operation. The combined mine plan is the result of a substantial amount of mine engineering and evaluation and provides the company with the opportunity to refurbish the existing mill, confirm its performance and significantly expand the mine life. Cash flow from the combined operation results in payback within 20 months and a pre-tax NPV with an 8% discount of $79.6 million. This is a significant improvement to the positive open pit PEA released in October. We will continue to explore and develop known gold mineralization at the Puffy Lake and Nokomis deposits with the intent of further extending the Maverick Gold mine life.”

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Richard H. Sutcliffe

or Alison Tullis
Manager, Investor Relations

by Ted Niles

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