Probe exceeds PEA target for Quebec gold project
“We are very happy to say that not only were we able to reach this goal, but that we actually exceeded it with Val-d’Or East,” he said.
Probe’s PEA results yesterday described a 12.5-year-old mine producing an annual average of 207,000 ounces at all-in sustaining costs of US $ 965 / oz.
Initial investments were valued at C $ 353 million, after-tax NPV5 at $ 598 million, IRR at 32.8% and payback at 2.7 years, using a gold price of 1,500 US $ / oz.
“To have a project like this in Canada is remarkable, but to have a project like this in an established mining camp like Val d’Or, which still has enormous exploration and growth potential is even rarer,” Palmer said.
The EEP considered a mixture of surface and underground mining, gravity concentrating, standard leaching with coal pulp technology and dry tailings.
He also noted that there were plans to change the course of the fish-bearing rivers and to relocate two public roads.
Palmer said Probe had explored less than 15% of its property and would speed up exploration programs and increase confidence in the resource, where the measured and reported component was doubled in June to 1.77 million. ounces and inferred to 2.2 Moz.
“We will continue to advance the project on all fronts as we make Val-d’Or-Est one of the main development stories in Canada,” he said.
The company is among those that appear increasingly attractive in terms of merger and acquisition opportunities.
Producer Eldorado Gold became a significant shareholder in July, acquiring 11.5% for C $ 23.7 million at $ 1.575 per share.
Probe shares (TSXV: PRB) are trading near a one-year high. They closed down 2.4% yesterday at $ 2.07, valuing it at $ 270 million ($ 213 million).
The company has about $ 29 million in cash and investments, according to a presentation this month.