Impressive Continued Growth In Mineral Resource At Beartrack-Arnett Gold Project
TORONTO - Revival Gold Inc. announced continued growth in the Mineral Resources and the completion of a Preliminary Feasibility Study (PFS) on the potential open pit heap leach restart of the Beartrack-Arnett Gold Project located in the western United States.
The updated Mineral Resource is based on 172,244 meters of drilling through the end of 2022 and contains: A Measured & Indicated Mineral Resource of 86.2 million tonnes at 0.87 g/T gold containing 2.42 million ounces of gold1, an increase of 14% over the 2022 Measured & Indicated Mineral Resource; and An Inferred Mineral Resource of 50.7 million tonnes at 1.34 g/T gold containing 2.19 million ounces of gold1, an increase of 13% over the 2022 Inferred Mineral Resource.
Contained gold in open pit heap leach Measured & Indicated Resources increased 142% to 42.3 million tonnes at 0.70 g/T gold containing 959,000 ounces of gold with additional Inferred Resources of 6.3 million tonnes at 0.53 g/T gold containing 108,000 ounces of gold; and Contained gold in underground mill Inferred Resources increased 180% to 6.7 million tonnes at 4.0 g/T gold containing 877,000 ounces of gold with a 33% increase in grade over the 2022 Inferred Mineral Resource.
The inaugural Proven & Probable open pit heap leach Mineral Reserve is 36.2 million tonnes at 0.74 g/T gold for 859,000 ounces of gold; Average gold production of 65,300 ounces of gold per year, for a total of 529,100 ounces of gold over an eight-year mine life; Pre-production capital of $109 million, working capital of $5 million, and life-of-mine (LOM) sustaining capital of $100 million, reflecting only a modest increase in capital relative to the 2020 Preliminary Economic Assessment; Total cash cost of $986 per ounce and All-In Sustaining Cost (AISC) of $1,235 per ounce of gold; After-tax NPV at a 5% discount rate (“NPV5%”) of $105 million and after-tax IRR of 24.3% at $1,800 per ounce gold increasing to an NPV5% of $138 million and after-tax IRR of 29.5% at $1,900 per ounce gold.
After-tax payback period of 3.4 years at $1,800 per ounce gold decreasing to 3.1 years at $1,900 per ounce gold; Low technical and execution risk of a brownfield project with existing infrastructure, minimal pre-production earthworks and mine pre-stripping, limited planned disturbance outside the Project’s current footprint, and a high proportion of low-risk pre-production capital expenditures on mechanical equipment; Excellent additional exploration potential with exploration drilling currently underway on high grade open pit oxide opportunities at Roman’s Trench and Haidee that offer near term opportunities to extend the open pit heap leach PFS mine life; and Opportunity to pursue a potential second phase mill operation with Mineral Resources that provide optionality to begin underground or with an open pit, or concurrently develop both.
“Completion of this PFS marks a significant de-risking milestone for Revival Gold,” said Hugh Agro, President & CEO. “Beartrack-Arnett presents a unique opportunity for meaningful US gold production from a low-risk, low capital restart of an established domestic mine site. The project features robust economics including an attractive 24% after-tax IRR at $1,800 gold which increases to 30% at current prices. Beyond the first phase of open pit heap leach production addressed in the PFS, potential exists for Revival Gold to pursue a second phase of underground and open pit mill operations. The more than doubling in Measured & Indicated open pit heap leach resources and near tripling of underground Inferred resources reflected in today’s update speaks to the impressive ongoing exploration and development potential at Beartrack-Arnett. With completion of the PFS, Revival Gold is now positioned to progress environmental and permitting preparations, fine tune engineering and design plans and advance the proposed Beartrack-Arnett project schedule. Meanwhile, exploration continues with drilling having resumed this month.”