On the base case state of affairs of $1,975/oz. gold worth, the venture’s web current worth is calculated at $50.6 million (at a 5% low cost), and the inner fee of return at 16.6%. Nonetheless, at the next, extra present gold worth of $2,400.oz., these economics would greater than double at $126.9 million and 33.4%, respectively.
The preliminary capital price is estimated at $89.7 million, giving the venture a payback interval of roughly 5 years underneath the bottom case and a pair of.4 years underneath the higher-gold-price state of affairs.
Augusta CEO Donald Taylor stated the Reward venture could possibly be in manufacturing inside 12 months of commencing full-scale building. “Our objective is to be a low-cost, 150,000 oz. gold every year producer in Nevada by 2027,” Taylor stated in a information launch.
The Reward venture can be the corporate’s first growth within the fast-growing Beatty district, the place AngloGold Ashanti has established a outstanding place following its acquisition of Corvus Gold in 2022. The worldwide miner’s most superior property there’s the North Bullfrog venture, which hosts mineral reserves of 1 million oz. grading 0.43 g/t gold.
Augusta stated the development of the Reward venture is anticipated to assist assist the event of its bigger Bullfrog venture positioned throughout the valley, which has 1.2 million oz. of gold grading 0.53 g/t in measured and indicated assets. Each properties are positioned alongside the Walker Lane Pattern, which has hosted massive producers up to now together with the Comstock Lode.
The corporate additionally stated in Thursday’s press launch that it’s conducting a strategic assessment, which can embrace joint ventures and/or asset gross sales.
Shares of Augusta Gold gained 8.8% on the TSX by 2:30 p.m. ET, giving the corporate a market capitalization of C$63.6 million ($47 million).