White Gold (TSX-V:WGO) has filed a maiden preliminary economic assessment (PEA) for its White Gold Project in Yukon, Canada, outlining a potential 9.4-year open-pit operation.
The study estimates an after-tax net present value of C$1.86 billion ($1.87 billion), using a 5% discount rate. Its base case assumes a gold price of US$3,600 ($5,120.82) per ounce, with a projected 41% after-tax internal rate of return and a 1.5-year payback period.
Prepared by JDS Energy & Mining, the report follows initial results released in August and subsequent revisions to the project’s economics.
The proposed operation would process 12,000 tonnes per day from the Golden Saddle, Arc, Ryan’s Surprise, and VG deposits. Gold production would average 188,000 ounces annually over the mine life, rising to 223,000 ounces annually during the first five years.
Initial capital is estimated at approximately C$1 billion, including contingency, with C$357 million in sustaining capital. Life-of-mine all-in sustaining costs are projected at US$1,482 per ounce.
CEO David D’Onofrio says the study marks a step towards potential development.
“Our maiden PEA is a significant milestone for White Gold, delivering a project with strong economics and significant growth potential,” D’Onofrio says.
Room beyond the initial mine plan
The PEA incorporates approximately 60% of the project’s current resource ounces. Golden Saddle’s underground potential is excluded, while more than 25 additional targets have been identified across the approximately 55,000-hectare property.
The assessment is preliminary and includes inferred resources. Mineral resources are not reserves, and there is no certainty the projected results will be realised.
The filing follows court approval in August for White Gold’s proposed spinout of certain Yukon critical minerals properties into W2 Critical Minerals. As previously reported by Mining.com.au, W2 also increased its associated financing to C$10 million.
White Gold is a Canadian explorer advancing gold deposits and regional exploration targets in Yukon’s White Gold district.
Write to France Pinzon at Mining.com.au
Main image: White Gold
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