VANCOUVER, Feb. 27, 2020 /CNW/ – ATAC Assets Ltd. (TSX-V:ATC) (“ATAC”) is happy to announce the completion of an up to date Mineral Useful resource and Preliminary Financial Evaluation (“PEA”) for the Tiger Deposit, positioned on the western finish of its 1,700 km2 Rackla Gold Property in east-central Yukon.
The 2020 PEA and Mineral Useful resource replace incorporates latest work, together with further diamond drilling, metallurgical testwork, and a revised geological mannequin specializing in higher defining high-grade developments.
2020 PEA Highlights
Highlights from the 2020 PEA, with a base case gold worth of US$1,400/ozand an change charge of C$1.00 equal to US$0.77 are as follows. Until specified in any other case, all values are proven in Canadian {dollars}.
- NPV(5%) of $118.2 million and an IRR of 54.5% earlier than tax, and an NPV(5%) of $85.Four million and an IRR of 42.6% after tax;
- Payback interval of 1.24 years (pre-tax);
- All-in sustaining price of US$661/oz;
- Roughly 267,000 ounces of gold produced at a median diluted grade of three.82 g/t;
- Peak annual manufacturing of 72,860 ounces of gold within the first working 12 months, with a median manufacturing of 61,900 ounces of gold per 12 months for the primary three years;
- Whole undertaking lifetime of seven years, together with one 12 months of building and pre-stripping adopted by six years of operation; and
- Pre-production capital prices of $110.1 million.
“The up to date geological mannequin and PEA envision a smaller however increased grade operation than contemplated by the 2016 useful resource and PEA. We’re very inspired by the brief payback interval and excessive IRR, that are calculated at a base case considerably decrease than present gold costs,” acknowledged Graham Downs, President and CEO of ATAC. “The up to date deposit mannequin has additionally recognized robust high-grade developments that are open alongside strike and at depth. Tiger’s excessive grades and margins, coupled with close by satellite tv for pc targets, present a compelling case for development.”
The Mineral Useful resource replace was accomplished by Mine Growth Associates (“MDA”) of Reno, Nevada. The PEA was accomplished by Tetra Tech Canada Inc. of Vancouver, British Columbia (mining, processing, infrastructure, monetary evaluation, environmental); Knight Piesold Ltd. of Vancouver, British Columbia (tailings and waste administration); and Blue Coast Metallurgy Ltd (metallurgy) of Parksville, British Columbia.
Desk 1: Comparability with 2016 PEA
|
Parameter
|
2016 PEA
|
2020 PEA
|
|
Gold Value (US$/oz)
|
$1,250
|
$1,400
|
|
Trade Fee (US$/C$)
|
$0.78
|
$0.77
|
|
Pre-Tax NPV(5%) (C$M)
|
$106.6
|
$118.2
|
|
Pre-Tax IRR
|
34.8%
|
54.5%
|
|
Pre-Tax Payback (years)
|
1.85
|
1.24
|
|
Submit-Tax NPV(5%) (C$M)
|
$75.7
|
$85.4
|
|
Submit-Tax IRR
|
28.2%
|
42.6%
|
|
Submit-Tax Payback (years)
|
1.93
|
1.40
|
|
Whole Recovered Gold (Ounces)
|
302,307
|
267,090
|
|
Pre-Manufacturing Capital (C$M)
|
$109.4
|
$110.1
|
|
Sustaining Capital (C$M)
|
$8.3
|
$9.3
|
|
Strip Ratio (waste to ore)
|
4.9:1
|
5.3:1
|
Financial Sensitivities
The next tables reveal the sensitivity of the Tiger Deposit pre-tax economics to adjustments within the worth of gold and change charges. The bottom case, highlighted within the tables under, assumes US$1,400 per ounce of gold at an change charge of C$1.00 equal to US$0.77.
Desk 2: Abstract of Gold Value Sensitivity (0.77 US$/C$)
|
Gold Value (US$/oz)
|
$1,250
|
$1,300
|
$1,350
|
$1,400
|
$1,450
|
$1,500
|
$1,550
|
|
Pre-Tax NPV(5%) (C$M)
|
$74.9
|
$89.4
|
$103.8
|
$118.2
|
$132.6
|
$147.0
|
$161.4
|
|
Pre-Tax IRR
|
38.7%
|
44.1%
|
49.4%
|
54.5%
|
59.4%
|
64.3%
|
69.2%
|
Desk 3: Abstract of Trade Fee Sensitivity (US$1,400/ozAu)
|
Trade Fee (US$/C$)
|
0.75
|
0.76
|
0.77
|
0.78
|
0.79
|
|
Pre-Tax NPV(5%) (C$M)
|
$129.0
|
$123.5
|
$118.2
|
$113.0
|
$108.0
|
|
Pre-Tax IRR
|
58.2%
|
56.3%
|
54.5%
|
52.6%
|
50.9%
|
Alternatives for Future Enchancment
The up to date Useful resource and PEA present quite a few key alternatives to additional improve the worth of the Tiger Venture:
- Refined geology mannequin recognized important excessive grade developments that are open alongside strike;
- Detailed overview of geology and drilling recognized areas the place infill drilling might enhance grade and useful resource continuity;
- Drilling up to now has been restricted in depth as solely open pit mining has been contemplated. Alternatives exist to increase sulfide mineralization at depth with grades which might doubtlessly assist underground mining, as demonstrated by the underground-constrained portion of the useful resource; and
- Prospecting, mapping and geochemical sampling has recognized quite a few close by early-stage targets which might present additional oxide and sulphide gold mineralization.
Mining and Processing
According to earlier research, the Tiger Venture has been modeled as an owner-operator, typical truck-and-shovel open-pit mining operation with a standard carbon-in-pulp (“CIP”) gold restoration course of. Yr-round operations could be supported through a 68 km tote highway, which might join the undertaking to the Yukon freeway system, close to Keno Metropolis.
A complete of two.7 Mt of mineralized materials and 14.Four Mt of waste rock will probably be produced from the pit in the course of the 7 years of mining operations and pre-stripping. The life-of-mine (“LOM”) common diluted gold grade is 3.82 g/t. The LOM stripping ratio (outlined as waste materials mined divided by mineralized materials mined) is 5.3:1.
Mineralized materials will probably be crushed, floor and cyanide leached in a standard CIP circuit, with manufacturing of doré bars on website through a typical adsorption, desorption and restoration remedy. Primarily based on the outcomes of metallurgical testwork and the mining schedule, projected LOM common recoveries are 90.5% for oxide materials and 60.8% for sulphide materials.
The processing plant will function year-round at a charge of 1,500 tonnes per calendar day, and can obtain full throughput in Yr 2. Peak annual manufacturing will probably be roughly 72,860 ozof gold in Yr 1, with a LOM common annual manufacturing of roughly 45,000 ozgold. Manufacturing in the course of the first three working years averages 61,900 ounces of gold per 12 months.
Capital and Working Prices
Whole LOM capital prices are $119.Four million, with $110.1 million in pre-production prices, and $9.Three million in sustaining capital. To attenuate preliminary capital prices, the PEA has assumed that modular tools could be used the place potential and that some tools and services will probably be leased.
The next tables summarize the undertaking capital and working prices.
Desk 4: Pre-Manufacturing and Sustaining Capital Prices
|
Space
|
Pre-Manufacturing ($M)
|
Sustaining ($M)
|
Life-of-Mine ($M)
|
|
Website Infrastructure
|
$8.4
|
–
|
$8.4
|
|
Entry Street
|
$11.6
|
–
|
$11.6
|
|
Open Pit Mining*
|
$10.4
|
–
|
$10.4
|
|
Supplies Crushing and
Dealing with
|
$2.0
|
–
|
$2.0
|
|
Course of Plant
|
$30.4
|
–
|
$30.4
|
|
Tailings and Water
|
$8.0
|
$9.3
|
$17.3
|
|
Venture Indirects
|
$20.8
|
–
|
$20.8
|
|
Proprietor’s Prices
|
$1.3
|
–
|
$1.3
|
|
Contingencies**
|
$17.2
|
–
|
$17.2
|
|
*
|
Contains capitalized pre-production mining prices. Main mining tools is leased
|
|
**
|
Contingencies have been factored on an area-by-area foundation relying on the element degree of every estimate.
|
Desk 5: Working Prices
|
Space
|
LOM Common
|
|
Mining Price ($/t mined)*
|
$4.28
|
|
Processing Price ($/t processed)
|
$29.88
|
|
G&A ($/t processed)
|
$15.33
|
|
Floor Companies ($/t processed)
|
$4.68
|
|
Tailings & Waste ($/t processed)
|
$0.64
|
|
Camp & Genset Leasing ($/t processed)
|
$1.68
|
|
Gear Leasing ($/t processed)
|
$3.55
|
|
*
|
Not together with capitalized pre-production mining prices
|
Mineral Useful resource
MDA accomplished an up to date Mineral Useful resource incorporating work accomplished on the undertaking since 2015. The 2020 useful resource features a considerably extra detailed geological mannequin which higher delineates high-grade developments all through the deposit. Moreover, the 2020 useful resource incorporates pit and underground constraints to fulfill a check of “affordable prospects of financial extraction” in accordance with present CIM Greatest Observe Tips.
The 2016 useful resource didn’t embrace mining and financial constraints and as a substitute introduced a world useful resource. For the 2020 replace, the worldwide Tiger Deposit useful resource has been reclassified into open pit and underground classes, and peripheral low grade sections current within the 2016 useful resource are not thought of reportable. Consequently, the earlier and up to date sources usually are not straight comparable.
Tungsten was estimated however will not be included within the PEA or reported on this press launch as preliminary trade-off evaluation discovered the financial contribution to be optimistic however marginal. Contained tungsten will probably be reported within the full Technical Report.
The next desk exhibits the Tiger Deposit Mineral Useful resource as of January 3, 2020.
Desk 6: Tiger Deposit Mineral Assets
|
Kind
|
Constraints*
|
Classification
|
Au Reduce-
|
Tonnes >
|
Grade
|
Ounces
|
|
Oxide
|
Open Pit
|
Indicated
|
0.75
|
1,980,000
|
3.74
|
238,000
|
|
Underground
|
Indicated
|
1.50
|
165,000
|
3.09
|
16,000
|
|
|
Sulphide
|
Open Pit
|
Measured
|
0.75
|
799,000
|
2.92
|
75,000
|
|
Open Pit
|
Indicated
|
0.75
|
847,000
|
2.68
|
73,000
|
|
|
Underground
|
Measured
|
1.50
|
29,000
|
2.06
|
2,000
|
|
|
Underground
|
Indicated
|
1.50
|
706,000
|
2.64
|
60,000
|
|
|
Whole
|
M+I
|
Variable
|
4,526,000
|
3.19
|
464,000
|
|
|
Oxide
|
Open Pit
|
Inferred
|
0.75
|
20,000
|
1.54
|
1,000
|
|
Underground
|
Inferred
|
1.50
|
41,000
|
2.62
|
3,000
|
|
|
Sulphide
|
Open Pit
|
Inferred
|
0.75
|
7,000
|
2.41
|
500
|
|
Underground
|
Inferred
|
1.50
|
97,000
|
2.26
|
7,000
|
|
|
Whole
|
Inferred
|
Variable
|
165,000
|
2.17
|
11,500
|
|
*
|
Open Pit constraints have been carried out utilizing a US$1,625 pit shell with financial parameters much like the PEA parameters. Underground constraints have been carried out utilizing a 1.Four g/t grade shell and removing of skinny/sporadic zones based mostly on MDA’s expertise
|
|
**
|
Gold grades are block-diluted
|
Certified Individuals
The reader needs to be cautioned that the PEA is preliminary in nature. It contains Inferred Mineral Assets which can be thought of too speculative geologically to have the financial issues utilized to them that will allow them to be categorized as mineral reserves. There is no such thing as a certainty that the outcomes of the PEA will probably be realized.
A Technical Report supporting the PEA in accordance with Nationwide Instrument 43-101 will probably be filed on SEDAR (www.sedar.com) and ATAC’s web site (www.atacresources.com) inside 45 days. Additional particulars relating to the 2016 Mineral Useful resource and PEA may be discovered within the Technical Report dated Might 31, 2016, which is filed on SEDAR and obtainable on ATAC’s web site.
The PEA was ready beneath the path of Tetra Tech Canada Inc., in cooperation with different trade consultants, all of whom are Certified Individuals (QPs) beneath phrases of NI 43-101 and have reviewed the technical content material of this press launch and permitted its dissemination. QPs contributing to the Mineral Useful resource and PEA are listed within the following desk.
Desk 7: Certified Individuals
|
Certified Particular person
|
Firm
|
|
Suraj Priyadarshi, P.Eng.
|
Tetra Tech Canada Inc.
|
|
Hassan Ghaffari, P.Eng., M.A.Sc
|
Tetra Tech Canada Inc.
|
|
Jianhui (John) Huang, Ph.D., P.Eng.
|
Tetra Tech Canada Inc.
|
|
Chris Martin, C.Eng., MIMMM
|
Blue Coast Metallurgy Ltd.
|
|
Steven Ristorcelli, C.P.G.
|
Mine Growth Associates
|
|
Peter Ronning, P.Eng.
|
New Caledonian Geological Consulting
|
|
Bruno Borntraeger, P.Eng.
|
Knight Piesold Ltd.
|
|
Matthew Dumala, P.Eng.
|
Archer, Cathro & Associates (1981) Restricted
|
Matthew Dumala, P.Eng., a Geological Engineer with Archer, Cathro & Associates (1981) Restricted, is the corporate’s designated QP for this information launch throughout the which means of Nationwide Instrument 43-101 and has reviewed and validated that the data contained on this information launch is in line with that offered by the QPs accountable for the PEA.
About ATAC
ATAC is a Vancouver-based exploration firm centered on advancing Yukon’s premier valuable & base metallic district, and grassroots exploration in Nevada. Work on its ~1,700 km2 Rackla Gold Property in Yukon has resulted within the Osiris Venture Inferred Mineral Useful resource of 1,685,000 ozof gold at a median grade of 4.23 g/t (in 12.Four Mt), a optimistic Preliminary Financial Evaluation for the Tiger Gold Deposit, and quite a few early-stage gold and base metallic discoveries. ATAC is well-financed with roughly $10 million in working capital.
On behalf of Administration and the Board of Administrators of ATAC Assets Ltd.
Graham Downs, President and CEO
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