In a news release, Gold Standard Ventures Corp. (GSV:TSX.V; GSV:NYSE) announced that its updated South Railroad prefeasibility study (PFS) on its Railroad-Pinion project in Nevada shows improved economics and lower risks than in the initial report. South Railroad comprises the Dark Star and Pinion deposits.
"We are very pleased to see the substantial improvement in project economics in this second PFS," CEO and director Jonathan Awde said in the release. "Project design is an iterative process, and we expect to see further improvements as we proceed with our development plans."
Since the maiden, September 2019 prefeasibility study, the company performed trade-off and optimization studies and incorporated findings from them into the update. Doing so enhanced project economics and reduced risks.
Specifically, capital costs were decreased to $132.9 million from $194 million. This boosted South Railroad's after-tax internal rate of return to 40% from 27.8% and the after-tax net present value to $265 million from $241.5 million. After-tax life of mine net cash flow also rose, to $357.6 million from $337.1 million.
Through its 2020 drill program, Gold Standard aims to extend the South Railroad mine life in two ways. One is converting ounces at Pinion and other satellite deposits in the Inferred category to the Measured and Indicated category. The other method is "step out exploration testing new geologic interpretations at Dark Star," the company stated.
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