Item 7.01 Regulation FD Disclosure.
On
Highlights - At
·After-tax Net Present Value (NPV) (5%) of
·$25 million in Undiscounted After-tax
·All-in sustaining costs of
·After-tax payback period of 1.3 years after start of commercial production
·Initial mine life of 7 years with significant potential to extend lifespan
·Project also includes extensive additional upside with higher gold price and resource growth potential
Due to new amendments recently adopted by the
Key Economic Results Key Economic Results of the IA with a summarized gold price sensitivity analysis are as follows: Base Case Gold Price Sensitivity Analysis Parameter$1,650 Gold$1,500 $2,000 $2,500
Undiscounted Pre-Tax Net Cash
$64 million $50 million $92 million $129 million After-tax IRR(1): 139% 112% 195% 275% Undiscounted After-tax Net Cash$72 million $57 million $103 million $145 million Flow(1): After-tax Payback Period 1.3 1.44 1.19 1.1 (years): All-in Sustaining Costs:$799 /Au oz. All-in Costs:$1,064 /Au oz. Total Operating Costs:$646 /Au oz.
(1) Tax calculation includes use of a GRMC
The IA uses a base case gold price of
Mineral Resource Estimate
Pit-constrained Mineral Resource Estimate for the Little Squaw Creek Placer Deposit: Resource Raw(1) Volume Gold Grade (troy Raw(1) Gold (troy Fine(2) Gold Classification (1000s bcy) oz./bcy) oz) (troy oz) Measured 2,609 0.0302 79,000 69,000 Indicated 2,188 0.0265 58,000 51,000 Measured & Indicated 4,797 0.0285 138,000 120,000 Inferred 771 0.0245 19,000 17,000
(1) Raw Gold - Gold as recovered from the placer deposit, historically 84% gold and 16% other metals like silver and copper (referred to as 840 fine).
(2) Fine Gold - Gold that is 99.99% pure (referred to as 9999 fine).
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To determine the accuracy of the block model used for the resource estimation, GRE completed various studies, including a production reconciliation to the block model. The reconciliation compared the reported raw ounces produced from 2009 through 2018 with the estimated raw ounces using the consolidated mined-out surface for the same time period as summarized in the table below:
Block Model Estimate (at Actual Oz of Raw Gold assumed cutoff Approximate Variance % Actual Oz of Raw grade of 0.002 Actual Greater/(Less) Than Gold Greater/(Less) Year opy) Production Estimate Than Estimate 2009 to 7,300 8,150 850 12% 2015 2016 13,700 10,200 -3,500 -26% 2017 10,700 14,680 3,980 37% 2018 16,000 20,360 4,360 27% Total 47,700 53,390 5,690 12%
The block model estimated 47,700 raw ounces (at an assumed cutoff grade of 0.002 ounces per yard [opy]) compared to actual production of 53,900 raw ounces, which was 12% greater than the estimate. If actual future production continues to be greater than the block model estimate as it has in the past, this would further strengthen the project's already highly profitable projected economics.
Capital and Operating Cost
Estimated capital costs total
The estimated operating costs total
Preliminary Economic Assessment
GRE has also prepared a Preliminary Economic Assessment (PEA) according to
Canadian 43-101 standards, which is similar to the
Item 9.01Financial Statements and Exhibits.
(d)Exhibits Exhibit No.Description 96.1 Initial Assessment Chandalar Mine 99.1 News Release, June 11 , 202 1
* Furnished to, not filed with, the
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