Optimized PEA
*As outlined in the news release dated June 4, 2013 – Full PEA to be published on SEDAR in late July 2013
Highlights of the June 2013 Optimized PEA:
- Large in-pit resource of 1.1 M ounces contained, and 852,700 ounces recoverable, gold
- Heap leach system averaging 80% gold recovery
- Average annual production of 76,500 ounces gold & 30,000 ounces silver &30,000 ounces silver
- Total cash cost of $778/gold ounce
- Initial capex of $101M inclusive of $36M of contingency and pre-production/indirect costs, engineering studies and permitting
- Strong leverage to gold with NPV(5%) $146.8M, 23.1% IRR and 4.7 year payback at $1300 gold increasing to NPV(5%) $469.8M, 59.2% IRR and 1.7 year payback at $1800 gold
- Does not include 2012-13 step-out exploration results in the North area and Yellow Jacket high-grade zones
- Low strip ratio of 0.53.
Base Case Gold Price Sensitivity Analysis – North Bullfrog Project
(all values in constant 2013 US$)
|
Gold Price ($/Oz)
|
NPV5% ($M)
|
NPV7.5% ($M)
|
IRR (%)
|
Payback (yrs)
|
|
$1100
|
$17.6
|
$(1.4)
|
7.3%
|
8.3
|
|
$1200
|
$82.2
|
$55.6
|
15.4%
|
6.1
|
|
$1300
|
$146.8
|
$112.6
|
23.1%
|
4.7
|
|
$1400
|
$211.4
|
$169.5
|
30.6%
|
3.4
|
|
$1500
|
$276.0
|
$226.5
|
37.9%
|
2.6
|
|
$1600
|
$340.6
|
$283.5
|
45.1%
|
2.1
|
|
$1800
|
$469.8
|
$397.4
|
59.2%
|
1.7
|
PEA Key Physical Data – North Bullfrog Heap Leach Project
|
Key Physical Data
|
Units
|
Value
|
|
Process Feed Mined
|
M tonnes
|
151.8
|
|
Overburden Mined
|
M tonnes
|
80.1
|
|
Total Material Mined
|
M tonnes
|
231.9
|
|
Mine Life
|
Years
|
11
|
|
Contained Gold
|
M Oz
|
1.07
|
|
Recovered Gold
|
M Oz
|
0.853
|
|
Recovered Silver
|
M Oz
|
0.333
|
|
Average Strip Ratio
|
Overburden/Process Feed
|
0.53
|
|
Average Gold Grade
|
g/t
|
0.219
|
|
Average Gold Recovery
|
%
|
80
|
|
Annual Process Feed Mined
|
M tonnes/yr
|
13.8
|
|
Annual Gold Produced
|
K Oz/yr
|
76.5
|
PEA Initial Capital Cost Estimate– North Bullfrog Heap Leach Project
|
Capital Area
|
Estimated Capital Cost (USD $M)
|
|
Initial Capital
|
$66.2 M
|
|
EPCM
|
$13.1 M
|
|
Contingency
|
$21.9 M
|
|
Total Initial Capital Cost
|
$101.2 M
|
|
|
|
|
Sustaining Capital
|
$108.8 M
|
|
Total LOM Capital Cost
|
$210.0 M
|
Operating Costs– North Bullfrog Heap Leach Project
|
Cost
|
Cost per Process tonne ($/tonne)
|
Cost/Recovered Gold Oz ($/Oz)
|
|
Mining
|
$2.14
|
$380
|
|
Processing
|
$1.73
|
$309
|
|
Administration
|
$0.41
|
$73
|
|
Reclamation
|
$0.09
|
$16
|
|
Total Operating Cost
|
$4.37
|
$778
|
North Bullfrog Project - Heap Leach PEA Summary
(values in 2013 USD based on a $1,300 Whittle shell, mining recoverable in-pit resources above
0.1 g/t (0.003 oz/ton) gold cut off grade)
|
Parameter
|
Summary Data
|
|
In-pit resource – Indicated
|
26.9 Mt at 0.290 g/t for 250,750 Au Oz.
|
|
In-pit resource – Inferred
|
124.9 Mt at 0.203 g/t for 816,650 Au Oz.
|
|
NPV(5%) ; IRR at USD 1,300 per Au Oz
|
USD 146.8M; 23%
|
|
Overall Strip Ratio
|
1 to 0.53 (mined mineral resource to overburden)
|
|
Average Annual Gold Production
|
76,500k Oz/year
|
|
Average Gold Recovery
|
80%
|
|
Average Cash Cost
|
USD 778/Au oz
|
|
Average Silver Recovery
|
8%
|
|
Average Total Mining Rate
|
57.7 k tonne/day |
|
Average Mineralized Material Mining Rate
|
37.8 k tonne/day
|
North Bullfrog Project – Estimated Annual Production
*As outlined in the news release dated December 6, 2012 – Full PEA published on SEDAR found HERE
Highlights of the December 2012 PEA:
- Initial gold production brought forward 2 years earlier targeting late 2014
- Average annual gold production 74,800 ounces
- 1.0M ounces contained and 765,000 ounces recoverable gold
- Total cash cost of $816/oz gold
- Low strip ratio of 0.48:1
- Does not include 2012 step-out drill results in the North area and Yellow Jacket high-grade zone
Base Case Gold Price Sensitivity Analysis – North Bullfrog Project
(all values in constant 2012 US$)
|
Gold Price ($/Oz)
|
NPV5% ($M)
|
NPV7.5% ($M)
|
IRR (%)
|
Payback (yrs)
|
|
$1300
|
$62
|
$38
|
13.0%
|
7.1
|
|
$1400
|
$119
|
$87
|
19.7%
|
6.3
|
|
$1479
|
$166
|
$130
|
26.4%
|
5.2
|
|
$1600
|
$232
|
$186
|
31.7%
|
4.3
|
|
$1700
|
$288
|
$235
|
37.3%
|
3.6
|
|
$1800
|
$345
|
$284
|
42.7%
|
3.2
|
PEA Key Physical Data – North Bullfrog Heap Leach Project
|
Key Physical Data
|
Units
|
Value
|
|
Process Feed Mined
|
M tonnes
|
135.7
|
|
Overburden Mined
|
M tonnes
|
64.6
|
|
Total Material Mined
|
M tonnes
|
200.3
|
|
Mine Life
|
Years
|
10
|
|
Contained Gold
|
M Oz
|
1.01
|
|
Recovered Gold
|
M Oz
|
0.76
|
|
Average Strip Ratio
|
Overburden/Process Feed
|
0.48
|
|
Average Gold Grade
|
g/t
|
0.233
|
|
Average Gold Recovery
|
%
|
75.0
|
|
Annual Process Feed Mined
|
M tonnes/yr
|
13.6
|
|
Annual Gold Produced
|
K Oz/yr
|
74.8
|
PEA Initial Capital Cost Estimate– North Bullfrog Heap Leach Project
|
Capital Area
|
Estimated Capital Cost (USD $M)
|
|
Phase 1 Initial Capital
|
$59.8 M
|
|
Phase 2 Start up
|
$35.4 M
|
|
Sustaining Capital
|
$128.3 M
|
|
|
|
|
Total*
|
$223.5 M
|
Operating Costs– North Bullfrog Heap Leach Project
|
Cost
|
Cost per Process tonne ($/tonne)
|
Cost/Recovered Gold Oz ($/Oz)
|
|
Mining
|
$2.17
|
$384
|
|
Processing
|
$1.72
|
$305
|
|
Administration
|
$0.59
|
$ 106
|
|
Reclamation
|
$0.12
|
$21
|
|
Total Operating Cost
|
$4.60
|
$816
|
North Bullfrog Project - Heap Leach PEA Summary
(All values in 2012 USD based on a $1,300 Whittle shell, mining recoverable in-pit resources
above 0.1 g/t (0.003 oz/ton) gold cut off grade)
|
Parameter
|
Summary Data
|
|
In-pit resource – Indicated
|
20.8 Mt at 0.31 g/t for 209,250 Au Oz.
|
|
In-pit resource – Inferred
|
114.9 Mt at 0.22 g/t for 804,570 Au Oz.
|
|
NPV(5%) ; IRR at USD 1,479 per Au Oz
|
USD 166.2M; 26.4%
|
|
Overall Strip Ratio
|
1 to 0.48 (mined mineral resource to overburden)
|
|
Average Annual Gold Production
|
74,800k Oz/year
|
|
Average Gold Recovery
|
75%
|
|
Average Total Mining Rate
|
55 k tonne/day
|
|
Average Mineralized Material Mining Rate
|
37 k tonne/day
|
Projected PEA production profile for the two phase North Bullfrog project