September 17 (SeeNews) - Canadian mineral exploration and development company Velocity Minerals said on Monday that it has completed an independent preliminary economic assessment (PEA) on its Rozino gold project in Bulgaria, envisaging an after-tax internal rate of return (IRR) of 33.1% and an after-tax NPV5% of $129 million (110 million euro).
“We have achieved our goal of advancing Rozino from discovery and exploration drilling through to this positive economic assessment in just over one year. On delivery of the PEA, the Company will have earned its 70% interest in the Project and will move forward towards a prefeasibility study in joint venture with our partner Gorubso,” Keith Henderson, Velocity’s president and CEO, said in a statement.
The PEA estimates steady state annual gold production of 65,000 ounces and peak annual output of 78,000 ounces.
Capital costs are seen and $97.6 million, while sustaining capital is expected to amount to $6.3 million.
Saleable gold dore will be produced at Gorubso's CIL plant in Kardzhali.
Velocity is also looking into further partnerships with Gorubso, in line with its strategy to build a multi-asset production profile that maintains annual production of more than 100,000 ounces of gold over a period in excess of 10 years.
"The Company is completing due diligence on other advanced properties located within the exploration and mining alliance area, with a view to earning 70% interests through additional option agreements with Gorubso," Henderson
($ = 0.8554 euro)