Gold Standard Ventures Corp. (GSV:TSX.V; GSV:NYSE) announced in a news release the positive results of the completed prefeasibility study (PFS) for South Railroad, part of its Railroad-Pinion project in Nevada. The Dark Star and Pinion deposits comprise South Railroad.
Highlights of the base case for South Railroad include an after-tax net present value of $241.5 million, at a $1,400 per ounce ($1,400/oz) gold price and a $17.11/oz silver price, and an after-tax internal rate of return of 27.8%.
The study outlines Proven and Probable mineral reserves of 1,248,000 ounces (1.248 Moz) of gold and 2.705 Moz of silver. It estimates placement of 156,000 ounces of gold annually over an initial eight-year mine life.
As for costs, initial capex is forecast to be $194 million, with an average life-of-mine cash cost of $582/oz after byproduct credit and an all-in sustaining cost (AISC) of $657/oz.
"The South Railroad project delivers excellent free cash flow as a result of the very low cash and AISC cost, even in low gold price environments," the release noted.
CEO and Director Jonathan Awde pointed out that several opportunities exist to improve on the South Railroad base case. One way is by adding to the mine life by upgrading more of the existing resources within the PFS area and capitalizing on other discovered, nearby deposits. Additionally, trade-off studies could reduce capital costs or improve recoveries.
In H1/20, Gold Standard will work on fleshing out some of these opportunities. In the meantime, it will drill some of the project's most prospective targets.
"The substantial free cash flow and significant opportunities for expansion of resources and reserves provide the opportunity for South Railroad project expansion with minimal shareholder dilution," according to the release.
With the PFS done, the company can now finalize permit applications for an environmental impact statement on South Railroad from the lead permitting agency, the U.S. Bureau of Land Management.
Read what other experts are saying about:
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 companies mentioned in this article are billboard sponsors of Streetwise Reports: Gold Standard Ventures. 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.
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 three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.