Radisson Announces Positive Preliminary Economic Assessment for O'Brien Gold Project C$532M After-Tax NPV5%, C$175M Initial Capital, Adjacent to Multiple Mills, Still Growing
Radisson Announces Positive Preliminary
Economic Assessment for O'Brien Gold
Project
C$532M After-Tax NPV5%, C$175M Initial Capital, Adjacent to
Multiple Mills, Still Growing
Rouyn-Noranda, Quebec--(Newsfile Corp. - July 9, 2025) -
Radisson Mining Resources Inc. (TSXV:
RDS) (OTCQB: RMRDF)
("
Radisson
" or the "
Company
") is pleased to announce a positive
Preliminary Economic Assessment (the "
PEA
") for the O'Brien Gold Project ("
O'Brien
" or the "
Project
")
located in the Abitibi region of Québec. Highlights are as follows (all figures are in Canadian dollars and
troy ounces unless noted):
Basis of Study:
Assumes off-site toll milling based on the results of a recent milling assessment and metallurgical
study that demonstrated the potential compatibility of the nearby Doyon gold mill, part of IAMGOLD
Corporation's ("
IAMGOLD
") Westwood Mine Complex
1
. Off-site milling reduces capital costs,
development risk, and project footprint.
Utilizes existing Mineral Resource Estimate ("
MRE
"), re-blocked with an updated cut-off yielding
more ounces in more tonnes with good continuity at a lower average grade.
Presents a base case "snap-shot" study that excludes recent drilling successes outside the
existing MRE and below historic mine workings, with a 50-60,000 metre (m) fully funded drill
program ongoing.
Value:
After-tax Net Present Value at a 5% discount rate ("NPV
5%
") of
$532 million ("M")
, Internal Rate
of Return ("IRR") of
48%
, and payback of
2.0 years
at US$2,550/oz gold ("Au").
After-tax NPV
5%
of
$871M
, IRR of
74%
, and payback of
1.1 years
at US$3,300/oz Au.
Cost:
Initial Capital Cost ("Capex") of
$175M
and Life-of-Mine Sustaining Capital of
$173M
Cash Cost
2
of
US$861/oz
and All-In Sustaining Cost
1
("AISC") of
US$1,059/oz
including
conceptual 30% toll milling margin on processing and G&A costs.
Extremely capital efficient with after-tax NPV
5%
to Initial Capital Cost ratio of
3.0
at US$2,550/oz
Au and
5.0
at a spot gold price of US$3,300/oz Au.
Production Profile:
11-Year Mine Life with
740 koz
mined and
647 koz
recovered at
87%
average recovery with a
gravity-flotation-regrind-leach flowsheet.
70 koz/annum
average steady-state gold production (Years 2-8) at an average annual after-tax
Free Cash Flow ("FCF") of
$97M
.
Underground mining with long-hole stoping and minimal surface facilities.
Radisson will host a technical webinar on the O'Brien PEA on Wednesday July 9, 2025 at 11am ET
(8am PT). Participants may register
here
. A recording will be available following the webinar.
Matt Manson, President & CEO, commented:
"We are pleased to be reporting today the first modern
mining study for the O'Brien Gold Project. This PEA builds upon the milling assessment completed
earlier this year that demonstrated the potential viability of processing O'Brien mined material at a
neighbouring mill. The result is a low cost and high value project should a beneficial milling
arrangement be secured. By taking advantage of existing infrastructure in the region, the study
surfaces considerable value for O'Brien while minimizing its environmental impact. The extremely
high NPV
5%
to cost ratio demonstrates the efficient allocation of capital that this approach offers.
"Rather than high-grading the deposit, as was the case with the historic O'Brien Mine, the PEA is
developed from the existing MRE with a lower cut-off, yielding more ounces, more tonnes and better
mining continuity at lower average grades. From that starting point, we are presenting a fully
underground mine plan, right sized at 1,200 tonnes per day ("tpd") and optimized at a cautious
US$2,000/oz gold price assumption, delivering 740,000 ounces of gold to the mill at high margins
over an 11-year life. The O'Brien Gold Project's legacy of high grades and visible gold continues to be
an attribute of the current mine design and the ongoing exploration."
Pierre Beaudoin, Chairman of the Board of Directors, commented:
"The PEA announced today is a
significant step forward for Radisson. The study outlines a credible mine plan and development
strategy for O'Brien, offering shareholders significant value even on the existing mineral resources.
This is also just a snap-shot of a project that is continuing to grow. The ongoing drill program is
demonstrating impressive new gold mineralization outside the scope of this initial mine design. On
the basis upon which the PEA is developed, we believe a significantly larger mineral inventory exists
to our exploration horizon of 2,000 m depth. Recent drill results are supporting this thesis."
Matt Manson continued
: "We see in O'Brien a broad system of mineralization with significant scale
potential. Our current focus at Radisson is to maximize this potential through the recently expanded
drill program and our strong treasury. Today's PEA, however, establishes a project development path
that is practical and highly rewarding. We intend to further pursue this path with environmental
baseline studies, additional engineering and mine plan optimization, community consultation, and
dialog with potential processing partners."
VIDEO: President & CEO Matt Manson comments on today's news
O'Brien Gold Project Preliminary Economic Assessment
The PEA was completed by Ausenco Engineering Canada ULC ("Ausenco") as lead consultant with
specific responsibility for metallurgy, processing design, infrastructure and financial modelling.
InnovExplo (a member of Norda Stelo Inc.; "Norda Stelo") completed the mine design and mine
scheduling, BBA Inc. were responsible for water management, surface facilities, and a review of the
Project's environmental assessment procedure and permitting requirements, and SLR Consulting
(Canada) Ltd. ("SLR") were responsible for the MRE.
The PEA is a companion study to a recently completed milling assessment for the Project in which a
metallurgical program was conducted with representative samples of mineralized core from O'Brien. The
samples were tested based on a series of flow sheet options which would conceptually be compatible
with the nearby Doyon gold mill, part of IAMGOLD's Westwood Mine Complex, with minimal adjustment
to the existing Doyon mill configuration. The milling assessment was conducted under a Memorandum of
Understanding ("
MOU
") with IAMGOLD (
Radisson news release dated September 9, 2024
).
The MOU
is non-binding and non-exclusive and contains no specific terms around potential commercial
arrangements between the parties. The PEA has been completed independently by Radisson and
establishes criteria for the development of O'Brien based on processing and tailings management at an
existing off-site facility under a toll milling arrangement.
Cautionary statement
: Readers are cautioned that the PEA is preliminary in nature, it includes inferred
mineral resources that are considered too speculative geologically to have economic considerations
applied to them that would enable them to be categorized as mineral reserves, and there is no certainty
that the PEA will be realized.
Table 1
: Summary of Key Results and Assumptions in the PEA
Production Data
note 1
Values
Units
Life-of-Mine
11
Years
Total Resource Mined
4,575
kt
Total Waste Mined
3,314
kt
Average Head Grade
5.0
g/t Au
Contained Gold
740
koz
Recovered Gold
647
koz
Average Gold Recovery
87%
Years 2-8: Steady State Run-Rate
note2
Average Production Mining Rate
1,160
tpd
Average Annual Gold Production
70
koz
Average Head Grade
4.9
g/t Au
Annual Average After-Tax Free Cash Flow
$97
C$M
Capital Costs
note 1
Values
Units
Initial Capital
$175
C$M
Sustaining Capital (Excluding Closure)
$173
C$M
Capital Intensity (Initial Capital/oz milled)
$172
US$/oz
Life-of-Mine Operating Costs
notes 1
,3
Values
Units
Mining
note 3
$76
C$/t milled
Processing
$38
C$/t milled
G&A
$31
C$/t milled
30% Processing Toll
note 4
$19
C$/t milled
Total Operating Cost
$163
C$/t milled
Refining & Transport
$6
US$/oz
Royalties
$10
C$M
Total Cash Cost
$861
US$/oz
All-In Sustaining Cost
note 5
$1,059
US$/oz
Financial Analysis
note 1
Values
Units
Gold Price for Financial Analysis
$2,550
US$/oz
US$:C$ Exchange
$0.73
Pre-Tax NPV
5%
$782
C$M
Pre-Tax IRR
65%
Pre-Tax Payback
1.4
years
After-Tax NPV
5%
$532
C$M
After-Tax IRR
48%
After-Tax Payback
2.0
years
Mine Revenue
$2,258
C$M
EBITDA
$1,496
C$M
EBITDA Margin
66%
Pre-Tax Unlevered Free Cash Flow
$1,146
C$M
After-Tax Unlevered Free Cash Flow
$803
C$M
Note
s:
1
.
Denotes a "specified financial measure" within the meaning of NI 52-112. See note on "Non-IFRS Financial Measures".
2
.
Represents full calendar years
3
.
LOM operating costs includes cash operating costs during the initial capital period. Mining operating costs exclude waste development
costs and mobile equipment costs which are captured as sustaining capital items
4
.
Processing toll milling charges are conceptual and have been estimated by Ausenco based on recent industry precedent
5
.
AISC inclu
des Royalties, Total Cash Costs and Sustaining Capital, including closure costs. Excludes corporate G&A.
Mineral Resources
The MRE for the Project was originally disclosed in March 2023 (
Radisson news release dated March
2, 2023
) based on 325,509 m of drilling completed to the end of 2022 and authored by SLR. Indicated
Mineral Resources were estimated at 0.50 million ounces (1.52 million tonnes at 10.26 g/t Au) with
additional Inferred Mineral Resources of 0.45 million ounces (1.60 million tonnes at 8.66 g/t Au). The
2023 study utilized a 4.5 g/t Au cut-off at US$1,600/oz Au with certain assumptions for minimum mining
width, mining costs, C$:US$ exchange and metallurgical recovery. Mineral Resources that are not
Mineral Reserves do not have demonstrated economic viability.
For the purposes of the PEA, the 2023 block model was re-blocked by SLR in the Z-direction to 5 m to
allow for more flexible underground mine design, and an updated cut-off and set of economic criteria
were applied consistent with Deswick Stope Optimizer ("DSO") parameters used for the optimization of
the underground mine schedule and the Project's recent milling assessment. The MRE now utilizes a cut-
off of 2.2 g/t Au at US$2,000/oz Au. No other changes were made. This has the effect of increasing
tonnage and ounces and decreasing average grade compared to the previous estimate (Table 2).
Table 2
: Mineral Resource Estimate Using a 2.2 g/t Au Cut-Off and US$2,000/oz Gold Price
(
Numbers in Italics Represent Changes from the MRE based on a 4.5 g/t Au Cut-Off and
US$1,600/oz Gold Price.)
Category
Tonnes (kt)
Grade (g/t Au)
Oz (koz Au)
Indicated
2,204
+45%
8.2
-20%
582
+16%
Inferred
6,671
+317%
4.4
-50%
932
+109%
N
ot
es:
1
.
Prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards (2014) and Best
Practice Guidelines of Mineral Resources and Reserves (2019).
2
.
Mineral Resources are reported above a cut-off grade of 2.2 g/t Au based on a C$172.5/t operating cost.
3
.
Mineral Resources are estimated using a long-term gold price of US$2,000/oz Au, a US$:C$ exchange rate of 1:1.33, and a metallurgical
recovery of 90%.
4
.
Wireframes were modelled at a minimum width of 1.2 m.
5
.
Bulk density varies by deposit and lithology and ranges from 2.00 t/m³ to 2.82 t/m³.
6
.
Full length composites were capped 40 g/t Au.
7
.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
8
.
Numbers may not a
dd
due to rounding.
Between the end of 2022 and the present, Radisson completed approximately 50,000 m of additional
drilling at the Project. Drilling that was completed within the volume of the MRE is assessed to have no
material impact on the overall contained mineral resource, such that the MRE is appropriate in SLR's
opinion for mine planning. Drilling that was completed outside the volume of the MRE, including below
the level of the historic mine workings at O'Brien, has indicated the presence of significant additional
gold mineralization that is not incorporated in the current conceptual mine plan. Radisson expects to
complete a further 50,000-60,000 m of drilling in 2025 and 2026, at which time the Company expects to
complete an updated MRE.
Mining
The PEA describes an 11-year mine life based on the mining of 4.57 Mt of mineralized material and
3.31 Mt of waste rock (Table 3). Mining will be fully underground with long-hole stoping and a cemented
rock backfill. Stope design is benefitted by good spatial continuity of reported resource blocks at the
lower cut-off grade. Minimum and average stope widths are 2.2 m and 2.7 m respectively, including 0.7
m of planned dilution. The mine will be accessed by way of twin 4.5 m by 4.5 m ramps from surface to a
depth of 950 m with 86 kilometres (km) of development. Mining equipment includes 20 tonne trucks with
rock haulage assisted by vertical conveyors delivering mined material from the 300 m level to a surface
run-of-mine pad. The underground mine design does not incorporate any infrastructure from the historic
O'Brien Mine. A shaft at the historic Kewagama Mine site east of O'Brien will be reused for ventilation.
Mined material will be trucked by road for processing.
Table 3
: Mined Material
Material
Tonnes
(kt)
Oz
(koz Au)
Head Grade
(g/t Au)
Production Stopes
3,146
588
5.8
Marginal Stopes
169
16
2.9
Development
469
91
6.0
Low-Grade Development
790
45
1.8
Total Mineralized Mined Material
4,575
740
5.0
Waste
3,314
n/a
n/a
Figure 1:
Annual Average Production Schedule
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10977/258183_1e2a85bb743ed9d7_002full.jpg
The underground mine was designed and production scheduled on the basis of a DSO optimization at
US$2,000 Au and production cut-off grades of 3.05 g/t Au and 3.11 g/t Au depending on the royalty to be
considered. "Mined Material" is categorized as Production Stope Material, Marginal Stope Material,
Development Material, Low-Grade Development Material and Waste. In Years 2-8 during which the
Project maintains steady-state operation, production from stopes averages 1,160 tpd. However, the
PEA contemplates up to 2,000 tpd of mill capacity. Consequently, all mineralized mined material is
scheduled for processing (Figure 1), resulting in an average head grade of 5.0 g/t Au, delivering an
average of 1,410 tonnes of mined material daily to the mill, and eliminating the requirement for a low-
grade stockpile.
Mineral Resources not included in the mine plan are those considered too isolated or too marginal at a
US$2,000/oz DSO optimization. The mine design also excludes Mineral Resources located in the
former Thompson Cadillac mine area or in areas considered too close to the historic workings. The
quantity of mineralized mined material in the mine design is highly sensitive to the gold price
assumption, with the DSO optimization delivering significantly more mined material in both existing
production stopes and development areas, as well new stopes and development areas, at higher gold
prices.
Infrastructure and Site Facilities
The Project is located adjacent to the Trans-Canada Highway 117 and has existing road access to the
historic O'Brien mine site. The PEA contemplates twin underground mine portals located 2 km to the
east of the historic site, with new haul roads, a waste rock pad, a run-of-mine pad, laydown areas, the
surface installation of a vertical conveyor, trenches and sumps for water management, and a waste-
water treatment plant. The PEA does not contemplate a mill, tailings deposition, accommodation camp,
or major maintenance facilities. Small vehicle maintenance and site offices/mine dry will be provided
from existing facilities or temporary modules. A new substation will derive power from the adjacent 112
kV high voltage transmission line operated by Hydro-Québec.
Processing
(See footnote 1)
The PEA contemplates processing and tailings deposition at an off-site facility. To assess the viability of
this scenario, Radisson conducted a metallurgical study and milling assessment under the auspices of
an MOU with IAMGOLD to assess the design criteria for processing O'Brien mined material at the
nearby Doyon gold mill, the processing facility for IAMGOLD's Westwood Mine Complex. The Doyon mill
is located 21 km west of O'Brien and directly accessible along Trans-Canada Highway 117.
The metallurgical results of this milling assessment were previously reported (
see Radisson news
release dated February 3, 2025
) and are incorporated into the PEA. Gold recoveries of between 86%
and 96% were obtained based on a series of flow sheet options, all of which are compatible with the
Doyon mill with minimal or modest additional capital. The metallurgical program was undertaken at the
Lakefield, Ontario facilities of SGS Canada Inc. under the supervision of Ausenco.
The Doyon mill currently operates at approximately 3,000 tpd with a conventional cyanidation process.
Mined material is processed with a primary crusher and a two-stage semi-autogenous SAG mill/Ball mill
grinding at 75 µm (P80). Leaching is by way of two stage Carbon-in-Leach and Carbon-in-Pulp circuits.
The PEA contemplates a Gravity-Flotation-Regrind-Leach flow sheet and assumes Radisson deploying
$21M of capital to upgrade the gravity and flotation circuits at Doyon that have been used previously but
are currently inactive.
The Doyon mill currently processes approximately 1,000 tpd from the underground Westwood mine and
approximately 2,000 tpd from the nearby Grand Duc open pit. Processing of Grand Duc material is
estimated to be completed in early 2027, as outlined in the Westwood Mine Complex technical report
dated September 30, 2024. Hence, the PEA envisions up to 2,000 tpd of mill capacity available for
O'Brien at Doyon, allowing for the direct shipment of both production material
and
lower grade
development material at an average of 1,400 tpd. The PEA does not anticipate the stockpiling of low-
grade mined material at the O'Brien site, resulting in a significant cost saving.
Life-of-mine average gold recovery with the Gravity-Flotation-Regrind-Leach flowsheet is estimated at
87%. This is based on 90% recovery for the O'Brien metallurgical sample at an average grade of 6.3 g/t
Au and the application of a grade-recovery model to the average head-grade expected in the PEA of 5.0
g/t Au after the processing of low-grade development materials.
O'Brien gold mineralization is associated with pyrite and arsenopyrite. The metallurgical program
determined average arsenic values of 0.4% to 0.5% in whole rock, relevant if material is being sent to
tailings deposition on-site, and 4.6% in flotation concentrate, relevant if a concentrate is being sold to an
off-take agent. These values are consistent with precedent projects in Québec's Abitibi and offtake
threshold limits for concentrates of high-grade gold projects. The PEA contemplates tailings deposition
after leach without a segregated tailings impoundment. If one is required, additional capital expenses
would be incurred.
The PEA contains estimates of operating and capital costs for trucking, processing, tailings
management and G&A developed by Ausenco from first principles based on the metallurgical results
and precedent projects. These costs correspond well to recently reported operating results from the
Doyon facility. The PEA's financial results reflect an additional 30% charge on processing and G&A
costs, corresponding to approximately $19/t, to reflect the impact of a potential toll milling charge. The
MOU between Radisson and IAMGOLD contains no specific terms around potential commercial
arrangements between the Parties, including the use of the Doyon mill or the terms of potential toll-
milling. There is no certainty that any arrangement between the Parties will result from their dealings
pursuant to the MOU, which is non-binding and non-exclusive.
Capital and Operating Costs
(See footnote 1)
Initial Capital costs (Table 4) are estimated at $175M and reflect costs incurred during a 21-month
period of early works, mill modification and principal mine construction to the end of the first quarter of
Year 2 and the attainment of commercial production. The Initial Capital cost estimate excludes both pre-
production mine operating costs and revenue, which are reflected in the Life-of-mine operating cost and
revenue estimates, and excludes development costs incurred prior to the commencement of early works.
Contingencies on individual capital line items in the underground mine design are at 15%, developed
within the material, productivity and cost estimates. Contingencies on non-underground mine items, and
on mill modifications and surface facilities, are at 25%.
Life-of-mine Sustaining Capital costs are estimated at $173M and reflect capital costs incurred after the
first quarter of Year 2, including underground mine development costs in waste rock and underground
mine infrastructure, but excluding mine closure and salvage. Mobile mining equipment is scheduled to be
purchased in installments, and is represented as Initial Capital, to the extent that a payment or deposit
occurs within the project construction period, and as Sustaining Capital to the extent it occurs during the
operating phase.
Table 4:
LOM Capital Costs
Item
note 1,2
Cost (C$M)
Mining Capex
$93
Mobile Equipment
$25.7
Mine Development
$47.4
Buildings
$0.4
Mine Services
$19.7
Process Plant
$21
Flotation
$4.5
Regrind
$14.1
Reagents
$2.0
Onsite Infrastructure
$16
Offsite Infrastructure
$8
Indirects
$14
Owners Costs
$4
Cash Contingency
$20
Total Initial Capital
$175
Sustaining Capital
$173
Closure
$5
Salvage
$(3)
Total
$ 350
Notes:
1
.
Denotes a "specified financial measure" within the meaning of NI 52-112. See note on "Non-IFRS Financial Measures".
2
.
Columns may not sum exactly due to rounding.
Mining, haulage and water management operating costs (Table 5) are estimated at $75.66/t milled
(LOM). These are developed by Norda Stelo from first principles based on recent precedent projects
with similar mining methodologies and location. Total life-of-mine mining costs, including mining related
Initial Capital, Sustaining Capital and Operating costs are $581M, or $127/t milled. Processing and
G&A cost estimates are developed by Ausenco from first principles based on the results of the milling
assessment conducted at the Doyon mill and based on recent precedent projects. Toll Milling Charges
are conceptual and have been estimated by Ausenco based on recent industry precedent.
Total Cash Costs are US$861/oz with AISC of US$1,059/oz (LOM). AISC³ during the steady-state
operations of Years 2-8 is estimated at US$1,106/oz.
Table 5
: Life-of-Mine Operating Costs and AISC
Item
note1,2
Value
Units
Mining, Haulage and Water Management
$346
C$M
$75.66
C$/t milled
Processing & Tailings Treatment
$173
C$M
$37.71
C$/t milled
Process Toll
note3
$87
C$M
$18.94
C$/t milled
G&A
$142
C$M
$31.06
C$/t milled
Total
$747
C$M
$163.38
C$/t milled
Off-Site Costs, Refining and Transport
$6
C$M
Royalties
$10
C$M
Total Cash Costs
$861
US$/oz Au
Sustaining, Closure, Salvage Capital
$197
US$/oz Au
Total AISC
note4
$1,059
US$/oz Au
Notes:
1
.
Denotes a "specified financial measure" within the meaning of NI 52-112. See note on "Non-IFRS Financial Measures".
2
.
Columns may not sum exactly due to rounding.
3
.
Conceptual and estimated based on recent industry precedent.
4
.
AISC includes Royalties, Total Cash Costs and Sustaining Capital, including closure costs and corporate G&A.
Financial Analysis
At a long-term consensus gold price of US$2,550 and an exchange rate of 0.73 (US$/C$) the Project
generates an after-tax NPV
5%
of $532M and IRR of 48% (unlevered; Table 6). Payback on initial capital
is 2.0 years. The Project's valuation is discounted to Year -0.5 when early works would be scheduled to
commence.
Table 6:
Valuation Sensitivities to the Gold Price (after-tax, unlevered)
Gold Price (US$/oz)
Price Case
$1,800
Downside
$2,200
$2,550
Base Case
$3,000
Upside
$3,300
Spot
$4,000
After Tax NPV (C$M)
0%
$340
$587
$803
$1,081
$1,266
$1,698
3%
$244
$448
$626
$856
$1,009
$1,366
5%
$193
$374
$532
$736
$871
$1,188
8%
$134
$286
$419
$591
$705
$971
10%
$102
$239
$358
$512
$614
$853
IRR
21%
35%
48%
64%
74%
100%
NPV
5%
/Capex
1.1
2.1
3.0
4.2
5.0
6.8
Payback
note 2
Years
4.3
2.7
2.0
1.4
1.1
0.7
Total After Tax FCF
note1, 3
C$M
$340
$587
$803
$1,081
$1,266
$1,698
Average Annual FCF
note1, 4
C$M
$48
$74
$97
$127
$147
$194
Notes:
1
.
Denotes a "specified financial measure" within the meaning of NI 52-112. See note on "Non-IFRS Financial Measures".
2
.
Payback is defined as achieving cumulative positive free cashflow after all cash costs and capital costs, including sustaining.
3
.
Calculated LOM, unlevered.
4
.
Calculated for Years 2-8 of steady state production, unlevered.
LOM EBITDA is estimated at $1.5 billion ("B"), with an effective EBITDA margin of 66%. LOM after-tax
FCF is estimated at $0.8B on an unlevered basis. Annual average after-tax FCF during the steady-state
operations of Years 2-8 is estimated at $97M. The Project is forecast to generate federal and provincial
income taxes and mining duties of $343M.
At spot gold of US$3,300/oz gold, the Project generates an after-tax NPV
5%
of $871M, IRR of 74%, and
payback on initial capital of 1.1 years. The Project is cash positive after-tax at gold prices above
US$1,260/oz.
The Project is most sensitive to revenue attributes such as gold price, head grade and exchange rate,
followed by operating cost and capital cost (unlevered; Table 7). Valuation sensitivities on conceptual
toll-milling charges expressed as margins on processing and G&A costs of between 0% and 60%. At
0% toll, the Project has an after-tax NPV
5%
of $578M and IRR of 52% (unlevered; Table 8).
A 2% Net Smelter Royalty ("NSR") is applied on gold production on certain claims on the easternmost
portion of the property in the favour of Globex Mining Enterprises Inc., covering approximately 22% of the
scheduled gold production.