EnviroGold Global Limited announced the publication of a National Instrument 43-101 (“NI 43-101”) Technical Report with the Mineral Resource Estimate and economic assessment for the Hellyer Tailings Reprocessing Project.
Highlights: 9 Million Tonnes of total tailings feed, 965,000 ounces Au Equivalent (oz AuEq) of gold, silver, copper, zinc, After – Tax Net Present Value (NPV) discounted at 10% of USD 175 Million, After – Tax Internal Rate of Return (IRR) of 66%, After – Tax net cash flows of USD 350 million over 8-year operating life, All-in Sustaining Cost USD 1,127 per oz AuEq, USD 100/oz less than the industry average. The estimated total available tailings feed for the Project is about 5.49 Mt of Type 1 tailings, and 3.73 Mt of Type 2 tailings for a total NI 43-101 inferred resource of 9 Mt. The Mineral Resource estimate is reported in accordance with NI 43-101 Guidelines for current Type 1 and Type 2 tailings and has an effective date of April 30, 2022. While the resource is presently being reported as an inferred resource for the purposes of this economic study, it is important to note that the Hellyer Tailings Resource has been extensively studied, has been the subject of multiple JORC resource reports (most recently in 2020), each of which included measured, indicated & inferred resources. The Company's management is confident that the substantial body of work completed on the Hellyer Tailings will facilitate a near-term resource upgrade. Type 1: tailings already processed by the HGM tailings operation and placed in the current HGM tailings storage facility available for NVRO to recovery at the end of the HGM project life. Type 2: tailings that are available for processing and can reasonably be expected to be processed by HGM and will be available during the first 5 years of the Project. NVRO's proposed operations at Hellyer will be undertaken using tailings material from two distinct operations: Zinc scavenger tailings recovered from the TSFs (Type 1 inferred mineral resource) - following the closure of the HGM reprocessing operation, NVRO will likely perform its own tailings recovery work (either directly or through a contract) via its own dredging operation (or other recovery method, such as hydro-mining). Zinc scavenger tailings direct feed from HGM's Plant (Type 2 inferred mineral resource) - the Project will use a reprocessing plant tailings line to the NVRO Plant fed from the ongoing HGM Mill operations as the source of ZST feed material. This source of tailings will be used until HGM completes its tailings extraction and milling operations (estimated to be in operation for the next four to six years). The homogenised nature of the tailings deposit and the likely mining style (dredging or hydro-mining) largely precludes the ability to apply any cut-off grade which may, in the future, be determined based on project economics. Accordingly, no cut-off grade is used and the stated resource essentially represents the complete tailings accumulation at the reported effective date. Determining reasonable prospects for eventual economic extraction incorporated the estimated cost for reclaiming, transporting, and processing the reprocessed HGM tailings stream in the NVRO process plant, which is estimated to be approximately USD 80 per tonne. Assuming a gold price of USD 1,650/oz and a projected gold recovery of 85%, then the break-even cut-off for the mineralization is estimated at 1.51 g/t Au. The tailings mineralization averages a grade of 2.3 g/t Au and is significantly more than the indicative break-even grade as this calculation does not consider the silver and the base metals. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The QP's are not aware of any known legal, political, environmental, or other risks that could materially affect the potential development of the mineral resources.