These 2019 updates are based on the one and a half years of operations at Brucejack since the start of commercial production in July 2017. The new data "highlight the continued robust economics of the low-cost, long-life operation," the release noted.
At a $1,300 per ounce gold price, Brucejack now has an estimated after-tax net present value at a 5% discount rate (NPV5%) of $2.59 billion over a 14-year mine life. This compares to the NPV5% of $2.10 billion over an 18-year mine life estimated in 2017. The 23% higher NPV is due to the forecasted production increase to 3.8 thousand tons per day (3.8 Ktpd) from 2.7 Ktpd.
Other changes since the previous reports include a reduction in the Proven and Probable (2P) mineral reserve gold grade to 12.6 grams per ton (12.6 g/t) from 14.4 g/t. The life of mine average operating cost was increased to CA$217 per ton from CA$163 per ton. All estimated costs were updated to reflect actual costs in 2018.
The new 2P reserves estimates for Brucejack and Valley of the Kings do not include any mineral reserve material mined prior to Jan. 1, 2019. Brucejack's updated total 2P reserves are 6.4 million ounces of gold, or 16 million tons (16 Mt) of 12.6 g/t gold. Mineral reserves for the West zone were not updated.
The new estimate of the Valley of the Kings total 2P mineral reserve is 5.8 million ounces of gold, or 13.1 Mt of 13.8 g/t gold. This gold grade was decreased about 14% from 16.1 g/t to account for more internal waste than was outlined in 2016.
A new NI 43-101 technical report, to be prepared by Tetra Tech, will update all of the operating specifics in the Brucejack feasibility study using the 2019 information. Once completed, it will be filed on SEDAR.
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