Extorre Gold Mines Limited TSX:XG announced results of a preliminary economic assessment for its Cerro Moro gold-silver project in Santa Cruz province, Argentina. The PEA projects total metal production of 848,000 ounces gold and 47.2 million ounces silver, with average production for the first five years at 1,300 tonnes per day of 123,017 ounces gold and 6.25 million ounces silver per year. Average cash costs are estimated at $453 per gold-equivalent ounce, initial capital costs are estimated at $207.3 million, with initial capital expenditures of $284 million. At a 5% discount rate, a 1,300 tonnes-per-day operation would have a payback period of 24 months, a pre-tax internal rate of return of 63% and pre-tax net present value of $737.4 million.
The Cerro Moro project has NI 43-101 indicated resource of 578,000 ounces gold and 38.89 million ounces silver, and inferred resources of 528,000 ounces gold and 26.25 million ounces silver.
or Rob Grey
VP Corporate Communications
by Ted Niles