Pre-Feasibility Study Highlights
The PFS employs a gold price of
- Base case after-tax net present value ("NPV") of
$80M using a$1,450 /oz gold price and 5% discount rate. - Assuming a spot gold price of
$1,950 per ounce ("Spot Gold Price"), the project economics increase to an after-tax NPV of$231M using a 5% discount rate. - Average annual gold production of 69 kozs per year over 2021 to 2027.
- Average all-in sustaining cash costs of
$1,204 per gold ounce. - No major capital required for resumption of full mining operations.
The PFS contemplates a 16,875 tpd heap leach operation using existing processing capacity of 22,000 tpd. Ore placed on the existing leach pad will be sourced primarily from open pits over an initial mine life of eight years, supplemented by a small portion of underground ore. Magna is currently processing minerals from the La Chicharra pit, in addition to previously stockpiled material, and plans to initiate underground mining at the higher-grade lenses in the south wall of the
Full details of the PFS and the current estimates of mineral reserves and resources can be found in the technical report entitled "NI 43-101F1 Technical Report Pre-Feasibility Study for the
Significant Leverage to Gold Price
Magna has calculated the impact to the NPV of
Assumed Gold Price | PFS ( | Spot ( | ||
After-Tax NPV | ||||
NPV Difference from PFS Case | -- | +58% | +133% | +189% |
Value Enhancement Potential
Magna has identified several near-term resource growth and operational expansion opportunities that have the potential to extend the mine life of
Magna is currently implementing an aggressive exploration strategy in and around the existing open pits and at depth to increase mineral reserves and resources in 2021. Magna's exploration strategy also extends to various regional targets being evaluated as potential sources of satellite ore, such as the Mercedes property and La Vetatierra target, that could leverage existing equipment and infrastructure to provide incremental low-cost production in the near-term with minimal capital expenditures.
In addition, as part of the operational improvement plan that was implemented shortly after the acquisition of
Magna's overall goal is to establish an operation capable of producing around 100,000 ounces per year for 10 years, providing for an approximate 45% increase from production levels outlined in the PFS.
Summary of Operating Parameters
The table below provides a summary of the PFS inputs and parameters.
Mining | |
Total Ore Tonnes Mined | 47.6 Mt |
Average Diluted | 0.50 g/t |
Total Contained Gold Ounces | 758 kozs |
8 years | |
Processing | |
La Chicharra Gold Recovery | 73% |
San Francisco Gold Recovery | 66% |
Average Gold Production (2021 – 2027) | 69 kozs |
Total Life of Mine Gold Production | 527 kozs |
Cash Operating Costs ($/t Ore) and Capital Expenditures | |
Mining Costs | |
Processing Costs | |
General and Administrative Costs | |
Selling Costs | |
Cash Operating Costs | |
Royalties and | |
Total Cash Cost | |
Cash Costs per Ounce | |
All-In Sustaining Costs per Ounce | |
Capital Costs | |
Total Development Capital Costs | |
Total Sustaining Capital Costs | |
Total Life of Mine Capital Costs |
Mineral Reserves and Resources
Mineral reserves as of
Category | Tonnes (kt) | Gold Grade (g/t) | Contained Gold (kozs) |
Proven Reserves | 21,058 | 0.511 | 346 |
Probable Reserves | 25,789 | 0.490 | 406 |
Total Reserves | 46,847 | 0.499 | 752 |
Low Grade Stockpile | 782 | 0.256 | 6 |
Total Reserves (incl. Stockpile) | 47,629 | 0.495 | 758 |
Mineral resources as of
Category | Tonnes (kt) | Gold Grade (g/t) | Contained Gold (kozs) |
Measured Resources | 34,675 | 0.462 | 515 |
Indicated Resources | 65,025 | 0.437 | 914 |
Measured &Indicated Resources | 99,700 | 0.446 | 1,430 |
Inferred Resources | 11,374 | 0.467 | 171 |
Note: Inclusive of mineral reserves |
Mineral resources are not mineral reserves and do not have demonstrated economic viability.
Qualified Person
About
The Company's shares trade on the TSXV under the trading symbol "MGR" and OTCQB under the trading symbol "MGLQF". Magna takes social license seriously and employ local community members and services in its operations.
For more information, please visit www.magnagoldcorp.com or contact
This news release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, information about timing of the technical studies and the results of pilot projects and operations, the Company's objectives, goals or future plans, exploration results, potential mineralization, the estimation of mineral reserves and resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
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