(via TheNewswire)
News Release
Star Royalties Highlights Preliminary Economic Assessment at Sabre Gold’s
All amounts are in
PEA Highlights
Robust post-tax economics result in a base case (
$1,800 /oz gold) after-tax IRR of 50.3%, low initial capital of$36 million and benefit from significant tax assets as well as recently reduced royalty encumbrance.PEA supports a high-grade gold underground mining operation with an average annual production of 40,765 ounces gold over a 5.5-year mine life with an all-in sustaining cost of
$1,290 /oz gold.Sabre Gold will continue to have discussions with potential providers of initial construction capital while earthworks are expected to commence as soon as a formal construction decision is made.
PEA mine plan prioritizes high-grade portions of the resource in early years to result in a payback period of less than two years, while generating nearly
$90 million in after-tax cumulative undiscounted cash flow.
Base Case Financial Results
Base Case | Valuation Sensitivity at | ||
After-tax NPV (5%) | |||
After-tax IRR | 50.3% | 71.0% | |
Payback period | 1.8 years | 1.3 years | |
Initial capital | |||
Sustaining capital | |||
LOM cash cost per ounce gold payable | |||
LOM all-in sustaining cost per ounce gold payable (“AISC”) | |||
Pre-tax cumulative undiscounted free cash flow | |||
After-tax cumulative undiscounted free cash flow |
Source: https://www.sabre.gold/sabre-gold-announces-preliminary-economic-assessment
Capital and Operating Costs
Under the PEA, the initial capital cost of Copperstone is
Operating Costs | $/oz Gold | $/t Ore | |
Mining | |||
Processing | |||
Site G&A | |||
Transportation and refining | |||
CASH OPERATING COSTS | |||
Royalties and stream | |||
Production taxes | |||
TOTAL CASH COSTS | |||
Reclamation | |||
Sustaining capital | |||
ALL-IN SUSTAINING COSTS | $1290.33 | $265.63 |
Source: https://www.sabre.gold/sabre-gold-announces-preliminary-economic-assessment
CONTACT INFORMATION
For more information, please visit our website atstarroyalties.com or contact:
Chief Executive Officer and Director Vice President, Investor Relations
apernin@starroyalties.com dkushnir@starroyalties.com
+1 647 494 5001 +1 647 4945088
About
Statement Regarding Third-Party Information
Certain disclosures herein relating to Sabre Gold and theCopperstone Gold Mineare based on information publicly disclosed by Sabre Gold and information available in the public domain as at the date hereof.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain statements in this news release may constitute "forward-looking statements", including those regarding future market conditions for metals and minerals. Forward-looking statements are statements that address or discuss activities, events or developments that the Company expects or anticipates may occur in the future. When used in this news release, words such as "estimates", "expects", "plans", "anticipates", "will", "believes", "intends" "should", "could", "may" and other similar terminology are intended to identify such forward-looking statements. Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or achievements of
A number of factors could cause actual results, performances or achievements to differ materially from such forward-looking statements, including, without limitation, changes in business plans and strategies, market and capital finance conditions, metal and mineral commodity price volatility, discrepancies between actual and estimated results of the PEA, mineral reserves and resources and metallurgical recoveries, mining operation and development risks relating to the parties which produce the metals and minerals
These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should exercise caution in relying upon forward-looking statements and the Company undertakes no obligation to publicly revise them to reflect subsequent events or circumstances, except as required by law.
Copyright (c) 2023 TheNewswire - All rights reserved.
Copyright (c) 2023 TheNewswire - All rights reserved., source