Gold Bull Resources Corp. (TSX-V: GBRC) ('Gold Bull' or the 'Company') is pleased to report completion of its Sandman Preliminary Economic Assessment (PEA or Scoping) Phase 2 Study at its 100% owned Sandman Project ('Sandman' or the 'Project') located in Humboldt County, Nevada, USA.
The Sandman Scoping Phase 2 Study has identified a stand-alone, low pre-production capital USD29M, conventional heap leach gold project producing circa 35,000 to 40,000 ounces of gold per year for 9 years. The project boasts an excellent Internal Rate of Return (IRR) at 101% and a pre-tax payback period of 1.1 years, using a conservative gold price of US$1800.
LOM Operating cost of US$17.22 per tonne
All in Sustaining Cost (AISC) of US$1,204/oz of gold
This Scoping Phase 2 Study focused on the efficient extraction of all mineralized material within an optimized pit shell in a sequence that facilitates effective use of initial pre-production capital and a more rapid mine commissioning. This Scoping Phase 2 Study will be a preliminary economic assessment, under NI 43-101 requirements, and will be filed on SEDAR within 45 days.
Gold Bull CEO, Cherie Leeden commented:
Sandman provides Gold Bull with a low-cost and moderate mine life start-up opportunity. In our Phase 1 PEA we only examined the oxide gold located above the water table, to enable a rapid timeline for mine commissioning and limited the initial pre-production capital. This Phase 2 scoping study focussed on extending the mine life from 5 years to 9 years while utilizing mine cashflow for Phase 2 development. The intent is to be mining, developing, and discovering additional ounces at the project utilizing mining cashflow. Excellent exploration potential exists at Sandman.
The known gold resources at Sandman remain open, therefore this PEA is the most conservative base case done using only our pit constrained ounces at a gold price of US$1800. If we were to use today's gold price of circa $2000, it pushes our NPV from US$145M to US$189M, and our IRR from 101% to 123%. Sandman is most sensitive to the gold price.
STUDY HIGHLIGHTS
The Sandman Scoping Phase 2 Study was prepared by Jerod Eastman, President of DJ 6E Consulting LLC, an independent third-party consultant. The Study has demonstrated potentially strong financial metrics for the Sandman Project based on a proposed stand-alone low-cost start-up heap leach gold mine project located approximately 25 km from the mining town of Winnemucca in central Northern Nevada, USA. Mr. Eastman was also the author of the Company's 'Preliminary Economic Assessment (Scoping Study), NI 43-101 Technical Report' for the Project with an effective date of September 12, 2022 and filed on SEDAR on October 27, 2022.
The Sandman Project Phase 2 Scoping Study includes Life of Mine (LOM) and reports a pre-tax IRR of 101%, NPV6% of US$145M, annual cashflow of estimated US$26Mpa, and a payback period of 1.1 years when applying a gold price of US$1,800/oz of gold. The initial pre-production capital cost is US$29M, which includes working capital of US$4.5M, and a further US$20.2M will be required as sustaining capital for additional mine studies, dewatering, and leach pad expansions. Total operating cost is $17.22 per tonne and all in sustaining cost of $1,204/oz gold. Royalty is low at 1.2% of product.
The Project is based on 455,000 gold ounces contained within the put shells, with a head grade of 0.73 g/t gold spread across four known gold deposits. The four (4) gold resources shall be mined via conventional open pit mining methods, with an average life of mine waste to ore ratio of 2.2:1, annual production is 35-40K oz gold, with 2.2Mt feed production rate.
ABOUT GOLD BULL RESOURCES CORP.
Gold Bull's mission is to grow into a US focused mid-tier gold development Company via rapidly discovering, developing and acquiring additional ounces. The Company's exploration hub is based in Nevada, USA, a top-tier mineral district that contains significant historical production, existing mining infrastructure and an established mining culture. Gold Bull is led by a Board and Management team with a track record of exploration and acquisition success.
Gold Bull's core asset is the Sandman Project, located in Nevada which has a 494,000 oz gold resource as per 2021 43-101 Resource Estimate. Sandman is located 23 km south of the Sleeper Mine and boasts excellent large-scale exploration potential.
Gold Bull is driven by its core values and purpose which includes a commitment to safety, communication & transparency, environmental responsibility, community, and integrity.
Contact:
Tel: 778.401.8545
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain statements that may be deemed 'forward-looking statements' with respect to the Company within the meaning of applicable securities laws. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words 'expects', 'plans', 'anticipates', 'believes', 'intends', 'estimates', 'projects', 'potential', 'indicates', 'opportunity', 'possible' and similar expressions, or that events or conditions 'will', 'would', 'may', 'could' or 'should' occur. Although Gold Bull believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, are subject to risks and uncertainties, and actual results or realities may differ materially from those in the forward-looking statements. Such material risks and uncertainties include, but are not limited to, the Company's ability to raise sufficient capital to fund its planned activities at the Sandman Project; the timing and costs of future activities on the Company's properties; maintaining its mineral tenures and concessions in good standing, to explore and develop its projects, to repay its debt and for general working capital purposes; changes in economic conditions or financial markets; the inherent hazards associates with mineral exploration and mining operations, future prices of gold and other metals, changes in general economic conditions, accuracy of mineral resource and reserve estimates, the potential for new discoveries, the ability of the Company to obtain the necessary permits and consents required to explore, drill and develop the projects and if obtained, to obtain such permits and consents in a timely fashion relative to the Company's plans and business objectives for the projects; the general ability of the Company to monetize its mineral resources and changes in environmental and other laws or regulations that could have an impact on the Company's operations, compliance with environmental laws and regulations, dependence on key management personnel and general competition in the mining industry. Forward-looking statements are based on the reasonable beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
GOLD BULL RESOURCES CORP. 