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White Gold PEA values Yukon project at C$1.9B and IRR of 38%
The preliminary assessment estimates open-pit output of 188,000 ounces of gold per year over a nine-year life, with a 1.7-year payback based on initial capital costs of C$1 billion.
Mining.com reports that White Gold’s preliminary economic assessment for its namesake Yukon project puts the post-tax net present value at C$1.9 billion, nearly double the study’s initial capital cost estimate of C$1 billion.
The same assessment discounts cash flows at 5% and calculates an after-tax internal rate of return of 38%, alongside a 1.7-year payback period, though the gold price assumption of $3,600 per ounce is higher than what peers use, the outlet said.
White Gold said the project ranks among Yukon’s top three undeveloped gold projects by overall economics, according to the study’s comparison to Snowline Gold’s Valley and Fuerte Metals’ Coffee projects.
The plan calls for annual production of 188,000 ounces over nine years, using an open-pit design that includes the Golden Saddle, Arc, Ryan’s Surprise and VG deposits, Mining.com added. The company also noted the project is not yet road accessible and would be linked to the planned 214-km Northern Access Route from Dawson City.
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