Nordgold Confirms Positive Preliminary Economic Assessment for the Tokko Gold Project
- Tokko is a rapidly advancing development project adjacent to Nordgold’s flagship Gross mine
- Tokko has the potential to become Nordgold’s second largest by production low cost mine
- Highlights the world class development potential of the Gross Mining District in the Yakutia region, eastern Russia
- Average annual production of 200 thousand ounces (“koz”) in years 2-10
- All-in Sustaining Costs (AISC) of US$ 637/oz over the Life-of-mine (“LOM”) of 14 years
- Mineral Resources of 523 koz (Indicated) and 3,088 koz (Inferred)
- A Mine Plan that contemplates the extraction of 3.1 Moz of Au from the two deposits
- After-tax NPV of US$653 million at 5% using a gold price of US$ 1,400 per ounce (“oz”)
- After-tax IRR of 29.5%
- Pre-production capital cost of US$ 306 million, including US$ 59 million contingency
- Planned start of production in 2024
London, United Kingdom, 26 February 2021 - Nord Gold UK Societas ("Nordgold" or the "Company"), the internationally diversified gold producer, is pleased to announce positive results of the NI 43-101 compliant Preliminary Economic Assessment (“PEA”) for the Tokko gold project in Yakutia, Russia..
The PEA was prepared by a group of international consultancies led by JDS Energy & Mining Inc (“JDS”). It demonstrates the potential to develop the Tokko project by two, low cost open-pit operations with two valley-fill, all season heap leach facilities at a low initial capital cost to deliver a Base Case after-tax net present value of approximately US$ 653 million and after tax net internal rate of return of approximately 29.5%.
2020 Tokko PEA Highlights:
Nikolai Zelenski, Chief Executive Officer of Nordgold, said:
“The results of the PEA confirm our long-held excitement in the Tokko project, which would be our second largest mine by production at full capacity. The PEA also once again showcases the significant potential of the world class highly prospective Gross District where we already operate the Gross and Taborny mines. Nordgold has an outstanding track record of new mine development, having launched three new mines since 2013, all on time and on budget. We are confident in our ability to rapidly advance the Tokko project successfully and expect to begin construction in 2022, with first gold in 2024, subject to the Feasibility Study planned for 2021.”
Please find the complete text of announcement in the attached PDF.
| Olga Ulyeva
Head of Corporate Communications
|Peter Ogden||Tel: +44 (0) 20 7250 1446|