Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

News Update


Updated Feasibility Study on Brazil Project Shows 'High IRR and Low Costs'
News Update

Share on Stocktwits


The owner of this gold asset provided the details of the revised study.

Leagold Santa Luz

The update to Leagold Mining Corp.'s (LMC:TSX.V; LMCNF:OTCQX) feasibility study on its Santa Luz project in Brazil showed strong economics. "With a high internal rate of return (IRR) and low costs, Santa Luz is a very attractive project," said CEO Neil Woodyer.

In the study, conducted by RPA Inc., Proven and Probable open-pit mineral reserves were updated to 28.2 million tons at 1.39 grams per ton grade containing 1.26 million ounces of gold. The consulting firm outlined an IRR of 47% and a net present value 5% of $149 million for the Santa Luz project. After-tax cash flow would be $302 million, using a $1,200 per ounce gold price, according to a recent press release.

The mine is projected to produce 1.06 million ounces over an 11-year mine life at an all-in sustaining cost of $856 per ounce. Initially, during phase 1 of the life of mine, the open-pit strip ratio would be reduced, "which allows for future decision points that may also include further upside potential from underground mining," Woodyer noted.

Capital cost to complete and restart the mine would be $82 million, including $12.3 million of working capital and first fills.

"The impressive results demonstrate the potential for Santa Luz to be a strong cash flow generator with potential to add over 100,000 ounces per year production following a short 10-month construction period," said Woodyer.

Because Santa Luz is a past-producing mine, all the major infrastructure to restart mining is already in place. The only new construction needed is retrofitting the plant for resin-in-leach gold recovery versus its previous design, which was for carbon in leach. Further, major equipment needed for the project is already on site, according to the company.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following company mentioned in this article is a billboard sponsor of Streetwise Reports: Leagold Mining. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Want to read more about Gold investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe