Geologix Explorations Inc. (TSX:GIX,FWB:GF6,OTCQX:GIXEF) released the results of its Prefeasibility Study for its Tepal Gold-Copper Project in Mexico. The estimated post-tax NPV at a 5% discount is $421 million with an IRR of 28%, with an estimated payback period of 2.7 years pre-tax and 3.2 years post-tax. The estimated mine life is 11.5 years, with an average milling rate of 38,700 tonnes per day.
As quoted in the press release:
- The Project’s estimated post-tax NPV, at a 5% discount, is $421 million with an IRR of 28%.1
- The Project’s estimated pre-tax NPV, at a 0% discount, is $925 million with an IRR of 36%.1
- The Project’s estimated payback period is 2.7 years pre-tax and 3.2 years post-tax.1
- Pre-production capital costs for the Project are estimated to be $354 million.
- The Project is expected to produce an average of 117,000 ounces of gold and 49 million pounds of copper annually over its initial seven years of operation.
- The Project has an estimated mine life of 11.5 years, and an average milling rate of 38,700 tonnes per day.
- Life of mine cash costs of production, net of by-product credits, are estimated to be $170/oz. for gold or $0.62/lb. for copper.1
 Based upon statistical four year trailing average metal prices stated in the ‘Economics’ section below
Geologix President and CEO Dunham Craig said:
We are very pleased to announce the completion of Tepal’s PFS, and encouraged by these promising results. The production estimates presented by the PFS exceed our previous internal estimates, and we believe the anticipated pre-production capital costs are manageable.