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Para Resources Inc.
Summary
| Project: | Gold Road Mine | |
|---|---|---|
| Deposit: | Gold Road Mine | |
| Location: | United States | |
| Commodities: | Gold | |
| Date: | 5/1/2018 | |
| Report Code: | NI43-101 | |
| Report Type: | PEA | |
| Project Stage: | Pursuing Resource Increase/Upgrade | |
| Report details: | 1-5-2018: Para Resources Inc. announces a PEA report for its Gold Road Mine deposit at the Gold Road Mine project. PEA results incl. pre-tax NPV of US $81.3M (5%), IRR of 238%, 7yr LOM at the project. Geoff Hampson, Para's CEO states, "We are very pleased | |
| Resources: | (Resource, Inf.): 0.978Mt @ 0.22opt for 214Koz Au | |
| CP/QP: | [Overall Report]: Richard Kehmeier (Not stated) | |
| ABSTRACT: | Geoff Hampson, Para's CEO states, "We are very pleased with the results of the Gold Road PEA and the validation of the investment thesis we developed when we acquired it. The PEA quantifies the robust returns and strong cash-flow for this project. The NPV of this project when compared to the current market capitalization of the whole company indicates that our shareholders will be rewarded for their patience and belief in our business plan. In addition, we consider the analysis by RPM as a base case and have already developed strategies to quickly ramp up production in 2019 to 500 TPD, increase the headgrade by developing working faces in historically higher-grade rock and to take advantage of the currently higher price of gold than was used in the study." Ian Harris, Para's President states, "The PEA provides the green-light to move forward with a quick restart of the Gold Road Mine. Our near-term focus will be on finalizing our startup plan, mine contract bidding, and executing an exploration plan intended to increase the resources at Gold Road and seek higher-grade material along the TrUe Vein. We plan to re-start operations at Gold Road in September of 2018 and expect to achieve full production by mid-2019. The PEA reports that the mill and mine infrastructure is in excellent shape and requires very little in the way of capex. The only major capex is required to install a shaft and headframe to reduce the cost of extracting material from the mine. We can produce using 20-tonne underground haul trucks up the 2-mile-long decline while the shaft is under construction." The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the results included in the PEA will be realized. If the Company were to bring the Gold Road mine into production without first establishing mineral reserves supported by a feasibility study, the Company cautions that this could result in higher risk of economic or technical failure of the operation than if a feasibility study had been prepared demonstrating economic and technical viability. There are no assurances that the Gold Road mine will be found to be economic. | |
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