Canagold Resources said that its New Polaris gold-antimony project in Canada will involve pre-production capital expenses of C$250m ($183.6m), according to the results of a feasibility study.
The study was conducted by Ausenco Engineering Canada with assistance from Moose Mountain Technical Services and JDS Energy & Mining.
The analysis predicts an after-tax net present value (NPV) of C$425m ($312m) and an internal rate of return (IRR) of 30.9%, assuming a gold price of $2,500 per ounce as the base case.
At a spot gold price of $3,300 per ounce, the after-tax NPV is projected to rise to C$793m ($582.4m), with an IRR of 47.3%. The capital expenditure payback period is anticipated to be 2.4 years for the base case scenario, reducing to 1.7 years under the spot price assumption.
Canagold Resources is the 100% owner of the New Polaris project, which is located in northwest British Columbia.
The planned underground mine is designed as a modern, mechanised operation with an estimated life of mine (LOM) of 8.3 years. It aims to produce approximately 805,589 ounces of gold from 2.8 million tonnes of mill feed, averaging a diluted grade of 9.94 grams per tonne (g/t).
The projected all-in sustaining cost (AISC) is $1,247 per payable ounce of gold.
Canagold CEO Catalin Kilofliski said: “While we continue to refine and optimise the project aimed at unlocking additional revenue from antimony metal and reduction of power costs and emissions through potential run-of-river green power generation, our primary focus is now shifting toward completing the permitting process, in order to advance New Polaris toward a construction and production decision.”
To enhance recovery and reduce costs, the project will employ mechanised cut-and-fill and sublevel long-hole mining methods. Processing will occur in a facility with a capacity of crushing and grinding 1000 tonnes per day, producing a bulk sulphide flotation concentrate designated for offsite final processing.
According to Canagold Resources, a marketing study has validated the marketability of the New Polaris gold concentrate. The concentrate targets a grade exceeding 100 g/t gold with an average arsenic content of 12%.
Potential buyers include traditional Asian gold roasters and international metal trading firms.
Overall, the feasibility study indicates the project’s financial potential, with treatment terms and an average net smelter return (NSR) projected at 87.9% over the life of the mine.
