The PEA demonstrates the
A National Instrument ("NI") 43-101 Technical Report summarizing the PEA will be filed on SEDAR+. Amounts stated are in Q4 2023 Canadian dollars (C$).
- High-grade underground mine with mineralized material1 averaging
C$361 /t NSR value (diluted) comprisingMain Zone with 11.43 Mt averaging 3.80 g/t Au, 37.37 g/t Ag, 2.34 % Zn, 1.30 % Pb (diluted) andYellowjacket Zone 0 .34 Mt averaging 8.61% Zn, 2.66% Pb, 65.0 g/t Ag and 0.07 g/t Au (diluted). - After-tax NPV5.0% of
C$454M and 21.1% IRR atUS$1,850 /oz Au,US$23.00 /oz Ag,US$1.26 /lb Zn, andUS$0.90 /lb Pb. - After-tax payback period of 3.2 years discounted at 5.0%.
- Pre-production capital expenditures ("CAPEX") of
C$588M (US$436M 2) including contingency ofC$84M (US$62M 2). - After-tax NPV5.0%: CAPEX Ratio of 0.77:1.
- Life of mine ("LOM") average annual payable production of 158 koz AuEq per year (114 koz Au per year, 940 koz Ag, 32.6 mlbs Zn, 19.6 mlbs Pb) over a production lifespan of 11.4 years.
- LOM cash costs3 of
US$540 /oz payable Au on a by-product basis, LOM all-in sustaining costs ("AISC"4) ofUS$836 /oz payable Au on a by-product basis. - 2,920 tonne per day ("t/d") crush and particle sort-mill-flotation-POX & gold plant producing gold/silver doré and saleable zinc and lead concentrates.
1. Underground mineralized material contains Measured, Indicated and Inferred Resources. |
2. Exchange Rate (C$/US$) of 0.74 |
3. Cash costs are inclusive of mining costs, processing costs, site G&A, treatment, and refining costs, and transportation costs. |
4. AISC includes cash costs plus estimated sustaining capital, royalties, and closure costs and less salvage value. |
5. Payable Gold Equivalent (AuEq) calculated by dividing gross sales revenue by |
The 2023 Revel Ridge PEA considers an underground mine with on-site treatment of the mined material by particle sorting followed by conventional milling, and flotation to produce separate lead and zinc concentrates for sale to third-party smelters, in combination with on-site treatment of refractory gold concentrates to produce gold-silver doré. The mine will comprise an owner-operated, ramp developed, long hole stope underground mine.
The processing capacity of 2,920 tonnes per day will result in a production lifespan of 11.4 years. An additional 18 months of mine ramp access and development, and construction of the process plant and filtered waste management facility (filtered tailings and filtered residues) is planned prior to the project becoming fully operational in Year 1. The PEA leverages Revel Ridge's existing infrastructure, including all-weather access roads, 3 km of underground development, permitted waste rock storage facility, full camp facility and approximately 15 km from the BC Hydro electrical system and the
The PEA is derived using the Company's NI 43-101 Mineral Resource Estimate (
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The PEA is preliminary in nature and includes Inferred Mineral Resources that are too speculative to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that PEA results will be realized.
The economic analysis was performed assuming a 5% discount rate. Cash flows have been discounted to the start of construction, assuming that the project execution decision will be taken, and major project financing will be carried out at this time.
On a post-tax basis, the NPV discounted at 5% is
General | LOM Total / Avg |
Lead Price (US$/lb) | 0.90 |
Zinc Price (US$/lb) | 1.26 |
Gold Price (US$/oz) | 1,850 |
23.00 | |
11.4 | |
Total Processed Feed Tonnes (kt) | 11,772 |
Total Waste Tonnes (kt) | 4,113 |
Production | LOM Total / Avg |
Head Grade – Pb (%) | 1.34 |
Head Grade – Zn (%) | 2.52 |
Head Grade – Au (g/t) | 3.69 |
Head Grade – Ag (g/t) | 38.18 |
Recovery Rate – Pb (%) to saleable Pb Concentrate | 68.4 |
Recovery Rate – Zn (%) to saleable Zn Concentrate | 66.8 |
Recovery Rate – Au (%) to saleable Pb Concentrate | 13.8 |
Recovery Rate – Ag (%) to saleable Pb Concentrate | 36.5 |
Recovery Rate – Au (%) to saleable Zn Concentrate | 0.4 |
Recovery Rate – Ag (%) to saleable Zn Concentrate | 5.8 |
Recovery Rate – Au (%) to doré | 80.4 |
Recovery Rate – Ag (%) to doré | 41.7 |
Total Metal Payable – Pb (m lbs) | 224 |
Total Metal Payable – Zn (m lbs) | 372 |
Total Metal Payable – Au (koz) | 1,300 |
Total Metal Payable – Ag (koz) | 10,716 |
Average Annual Payable Production – Pb (m lbs) | 20 |
Average Annual Payable Production – Zn (m lbs) | 33 |
Average Annual Payable Production – Au (koz) | 114 |
Average Annual Payable Production – Ag (koz) | 940 |
Operating Costs | LOM Total / Avg |
82.67 | |
Processing Cost (C$/t Processed) | 70.76 |
G&A Cost (C$/t Processed) | 3.53 |
Total Operating Costs (C$/t Processed) | 156.97 |
Cash Costs (By-Product Basis) (C$/oz Au)* | 540.2 |
AISC (By-Product Basis) ($/oz Au)** | 836.1 |
Capital Costs | LOM Total / Avg |
588 | |
Sustaining Capital (C$M) | 486 |
76 | |
Salvage Value (C$M) | 42 |
Financials | Pre-Tax |
NPV (5%) (C$M) | 751 |
IRR (%) | 29.0 |
Payback (Years) | 2.6 |
Financials | Post-Tax |
NPV (5%) (C$M) | 454 |
IRR (%) | 21.1 |
Payback (Years) | 3.2 |
*Cash Costs includes mining costs, processing costs, site G&A, treatment and refining costs, and transportation costs. |
**AISC includes cash costs cash costs plus sustaining capital, royalties, and closure costs and less salvage value. |
NPV5.0 remains positive for changes of 25% in revenue drivers (commodity prices, grade, and recovery), capital expenditure or operating costs. After-tax economic sensitivities to commodity prices are presented in Table 2 illustrating the effects of varying gold price as compared to the base-case.
Base Case | Higher Case | ||
Gold Price (US$/oz) | 1,700 | 1,850 | 2,000 |
After-Tax NPV (5.0%) (C$M) | 334 | 454 | 574 |
After-Tax NPV (8.0%) (C$M) | 218 | 319 | 419 |
After-Tax NPV (10.0%) (C$M) | 157 | 247 | 336 |
After-Tax IRR (%) | 17.3 | 21.1 | 24.7 |
After-Tax Payback (Years) | 3.7 | 3.2 | 2.9 |
The Company's current Mineral Resource Estimate (MRE; effective date of June 6, 2023) completed by
Classification | Tonnes | AuEq | AuEq | AgEq | AgEq | Au | Ag | Pb | Zn |
Measured & Indicated | 7,156.2 | 6.63 | 1,526.0 | 691.9 | 159,198.9 | 4.14 | 51.2 | 1.96 | 4.19 |
Inferred | 7,563.9 | 6.11 | 1,486.0 | 621.7 | 151,188.8 | 4.42 | 48.9 | 1.48 | 2.62 |
Notes:
1) | Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues |
2) | The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration, however there is no certainty an upgrade to the Inferred Mineral Resource would occur or what proportion would be upgraded to an Indicated Mineral Resource |
3) | |
4) | The following parameters were used to derive the NSR block model C$/tonne cut-off values used to define the Mineral Resource: |
• | |
• Exchange rate of | |
• | |
• | |
• Main Deformation Zones (MDZ) AuEq = Au g/t + (Ag g/t x 0.010) + (Pb% x 0.265) + (Zn% x 0.314); MDZ AgEq = Ag g/t + (Au g/t x 101.478) + (Pb% x 26.933) + (Zn% x 31.847); | |
• Mineral Resources have been reported using a NSR cut-off of | |
5) | Totals may not sum due to rounding |
Table 4: The Mineral Resource Estimates for each of the five mineralized zones at Revel Ridge
Classification | Cut-off NSR | Tonnes (kt) | Ag (g/t) | Ag (koz) | Au (g/t) | Au (koz) | Pb (%) | Zn (%) | NSR (C$/t) | AuEq (g/t) | AuEq (koz) | AgEq (g/t) | AgEq (koz) |
Totals for All Mineralized Zones | |||||||||||||
Measured | 110 | 1,916.5 | 58.6 | 3,611.6 | 5.49 | 338.5 | 2.05 | 4.01 | 544 | 7.88 | 485.6 | 799.0 | 49,231.4 |
Indicated | 110 | 5,239.7 | 48.5 | 8,168.8 | 3.64 | 613.9 | 1.93 | 4.25 | 409 | 6.18 | 1,040.3 | 652.8 | 109,967.5 |
Meas & Ind | 110 | 7,156.2 | 51.2 | 11,780.4 | 4.14 | 952.4 | 1.96 | 4.18 | 445 | 6.63 | 1,526.0 | 691.9 | 159,198.9 |
Inferred | 110 | 7,563.9 | 46.9 | 11,414.3 | 4.42 | 1,075.1 | 1.48 | 2.62 | 417 | 6.11 | 1,486.7 | 621.7 | 151,188.8 |
Measured | 110 | 1,550.1 | 63.6 | 3,171.4 | 5.89 | 293.6 | 2.25 | 4.25 | 585 | 8.46 | 421.5 | 857.4 | 42,730.1 |
Indicated | 110 | 2,922.4 | 49.6 | 4,662.5 | 4.97 | 466.6 | 2.02 | 3.60 | 491 | 7.13 | 669.8 | 722.7 | 67,902.9 |
Meas & Ind | 110 | 4,472.6 | 54.5 | 7,833.8 | 5.29 | 760.3 | 2.10 | 3.83 | 523 | 7.59 | 1,091.3 | 769.4 | 110,663.0 |
Inferred | 110 | 5,689.1 | 49.1 | 8,975.5 | 4.94 | 903.3 | 1.66 | 2.93 | 466 | 6.79 | 1,241.6 | 688.1 | 125,859.5 |
Measured | 110 | 196.1 | 33.8 | 212.8 | 5.08 | 32.0 | 0.95 | 1.78 | 427 | 6.23 | 39.3 | 631.4 | 3,980.8 |
Indicated | 110 | 846.5 | 28.8 | 785.0 | 4.01 | 109.1 | 0.74 | 1.11 | 328 | 4.84 | 131.8 | 491.0 | 13,362.9 |
Meas & Ind | 110 | 1,042.5 | 29.8 | 997.9 | 4.21 | 141.1 | 0.78 | 1.24 | 347 | 5.10 | 171.0 | 517.4 | 17,343.7 |
Inferred | 110 | 704.7 | 21.5 | 488.2 | 3.96 | 89.7 | 0.53 | 1.00 | 313 | 4.63 | 104.9 | 469.5 | 10,637.3 |
Totals For Revel Ridge Yellowjacket Zones | |||||||||||||
Measured | 110 | 0.5 | 48.0 | 0.8 | 0.11 | 0 | 1.89 | 3.99 | 122 | 2.79 | 0 | 363.1 | 5.8 |
Indicated | 110 | 887.4 | 62.9 | 1794.1 | 0.10 | 2.9 | 2.65 | 9.08 | 289 | 5.47 | 156.2 | 712.8 | 20,336.6 |
Meas & Ind | 110 | 887.9 | 62.9 | 1795.0 | 0.10 | 2.9 | 2.65 | 9.07 | 289 | 5.47 | 156.2 | 712.6 | 20,342.4 |
Inferred | 110 | 132.6 | 126.3 | 538.8 | 0.04 | 0.2 | 2.43 | 4.96 | 198 | 4.03 | 17.2 | 521.5 | 2,223.3 |
Measured | 110 | 169.7 | 41.5 | 226.6 | 2.35 | 12.8 | 1.53 | 4.37 | 307 | 4.55 | 24.8 | 460.9 | 2,514.7 |
Indicated | 110 | 583.5 | 49.4 | 927.1 | 1.88 | 35.3 | 2.09 | 4.69 | 296 | 4.40 | 82.6 | 445.9 | 8,365.1 |
Meas & Ind | 110 | 753.2 | 47.6 | 1,153.7 | 1.99 | 48.1 | 1.96 | 4.62 | 299 | 4.43 | 107.4 | 449.3 | 10,879.8 |
Inferred | 110 | 575.1 | 44.8 | 827.6 | 1.67 | 30.9 | 1.51 | 3.10 | 232 | 3.49 | 64.6 | 353.7 | 6,539.9 |
Totals For Revel | |||||||||||||
Inferred | 110 | 462.4 | 39.3 | 584.1 | 3.44 | 51.1 | 0.36 | 0.04 | 263 | 3.94 | 58.5 | 398.8 | 5,928.8 |
1 See notes to Table 3. |
An underground mining scenario is the basis for this PEA. The owner-operated and leased mining fleet will utilize conventional trackless haulage and long-hole stoping with backfill using cemented process tailings (paste), cemented rockfill and waste rock.
The mine designs and scheduling were engineered to provide 1,066 kt per year of mineralization to the 2,920 t/d process plant. A total of 11.77 Mt of diluted mill feed, including Inferred material, and comprising of
To support this PEA, metallurgical test work was supervised by
Based on the envisioned circuit and corresponding laboratory test response, the overall process recoveries based on the samples tested for the
71-73% Pb and 70-74% Zn. The Yellowjacket mineralization is less complex metallurgically than the
Run-of-mine ("ROM") material is crushed and screened before particle sorting to remove gangue. The beneficiated material reports to the milling and flotation circuits where lead and zinc sulphide concentrates are produced and dewatered for sale while the refractory sulphides are collected and treated by pressure oxidation ("POX") to facilitate extraction and recovery of gold and silver by cyanide leach -
Multiple marketing assessments have been completed to support this PEA which indicate that Revel Ridge zinc and lead-silver-gold concentrates are saleable.
The capital cost estimate conforms to Class 5 guidelines for a PEA-level estimate accuracy set out by the
The capital and operating cost estimate was developed in Q4 2023 Canadian dollars (C$). The capital cost summary is presented in Table 5 and the operating cost summary is presented in Table 6.
WBS | WBS Description | Initial Capital Cost | Sustaining Capital | Total Cost (C$M) |
1000 | Mining | 89.4 | 372.1 | 461.4 |
2000 | Process Plant | 280.1 | 0.0 | 280.1 |
3000 | Additional Facilities | 10.4 | 66.9 | 77.3 |
4000 | On-Site Infrastructure | 19.5 | 0.0 | 19.5 |
5000 | Off-Site Infrastructure | 10.0 | 0.0 | 10.0 |
Total Directs | 409.5 | 439.0 | 848.4 | |
6000 | Project Indirects | 13.2 | 2.1 | 15.3 |
7000 | Project Delivery | 61.2 | 7.3 | 68.5 |
8000 | Owner's Cost | 20.5 | 0.0 | 20.5 |
Total Indirects | 94.9 | 9.5 | 104.3 | |
9000 | Provisions (Contingency) | 84.0 | 37.2 | 121.1 |
Closure (Incl. Contingency) | ||||
Project Totals | 588.3 | 485.6 | 1,149.6 |
Table 6: Project Operating Cost Estimates (C$M) (totals may differ due to rounding): | ||
Cost Area | Average Annual Costs (C$M) | C$/t Processed |
Mining | 85.4 | 82.67 |
Process | 73.1 | 70.76 |
G&A | 3.65 | 3.53 |
Total | 162.1 | 156.97 |
Revel Ridge represents an existing exploration site with existing permits for mine discharge and waste disposal. The site has been maintained in good standing and environmental monitoring has been ongoing during operations and since the site was last active in 2012. There is a database of environmental information for the site and region spanning almost 30 years. To accommodate the mine design contemplated by the PEA, updated baseline data and an environmental assessment and mine permits will be required. The Company is currently performing an analysis of existing environmental data to identify additional data needs with the intent of carrying out environmental baseline studies to advance the environmental assessment and permitting processes.
The 2023 PEA demonstrates that Revel Ridge has the potential to become a commercially robust project. Additional opportunities and next steps include:
- Continued exploration and infill drilling for conversion of Inferred Mineral Resources to the Measured and Indicated categories.
- Mine scheduling investigations allowing for the further optimization of blending scenarios.
- Supplementary metallurgical optimizations including deposit-wide variability testing and host rock limestone quality.
- Optimization of the particle sorting process, flotation recovery and concentrate quality as well as the leach-
Merrill Crowe process. - Analyses and environmental baseline studies to support expedited permitting.
- Further optimization of waste and water management infrastructure, including surface geotechnical site investigations, laboratory testing, physical waste characterization, water balance modelling, and engineering studies.
A team of independent Qualified Persons ("QP") (as such term is defined under NI 43-101) at Ausenco,
Kevin Murray ,P.Eng ., of Ausenco is an independent QP for process and infrastructure capital and operating cost estimation and project financials.Scott Weston ,P.Geo ., of Ausenco is an independent QP for the environmental and permitting studies.Eugene Puritch ,P.Eng .,FEC , CET., ofP&E Mining Consultants Inc. is an independent QP for the geology and Mineral Resource Estimate.Evan Verkade ,P.Eng ., of Mining Plus is an independent QP for the mine planning and cost estimation.Stacy Freudigmann ,P.Eng .,F.Aus .IMM., of Canenco is an independent QP for metallurgical test work and recovery model.Wilson Muir ,P.Eng . of Knight Piesold is an independent QP for the tailings and waste rock management facility.
Rokmaster's flagship
- Measured & Indicated (M&I): 1.53 million gold equivalent ("AuEq") Measured & Indicated (M&I) ounces contained within 7.16 million tonnes with an average grade of 6.63 g/t AuEq.
- Inferred (Inf): 1.49 million AuEq ounces contained within 7.56 million tonnes at an average grade of 6.11 g/t AuEq.
Footnote 1. Stone et al. 2023. Technical Report and Updated Mineral Resource Estimate of the Revel Ridge Polymetallic Property. NI 43-101 Technical Report dated |
Ausenco is a global diversified engineering, environmental, construction and project management company providing consulting, project delivery and asset management solutions to the resources, energy, and infrastructure sectors. Ausenco's experience in poly-metallic projects ranges from conceptual, pre-feasibility and feasibility studies for new project developments to project execution with EPCM and EPC delivery. Ausenco is currently engaged on a number of global projects with similar characteristics and opportunities to the Revel Ridge project.
On Behalf of the Board of Directors of
President & Chief Executive Officer.
Neither
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: This news release may contain forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," 'projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in metal prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from Rokmaster's operations and other risks and uncertainties. Any forward-looking statement speaks only as of the date it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
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