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Enter Symbol
or Name
USA
CA



Calico Resources Corp
Symbol CKB
Shares Issued 77,445,845
Close 2015-02-27 C$ 0.14
Market Cap C$ 10,842,418
Recent Sedar Documents

Calico Resources files Grassy Mtn PEA on SEDAR

2015-03-02 08:58 ET - News Release

Mr. Paul Parisotto reports

CALICO'S PRELIMINARY ECONOMIC ASSESSMENT REPORT NOW AVAILABLE TO THE PUBLIC

Calico Resources Corp. has filed on SEDAR a preliminary economic assessment (PEA) and associated National Instrument 43-101 technical report for the company's 100-per-cent-owned Grassy Mountain project, located in Malheur county, Oregon. The report is dated as at Feb. 27, 2015, and was prepared by Mining Metal Consultants LLC (MMC). The company announced the results of the PEA on Jan. 13, 2015.

MMC has concluded that the Grassy Mountain project represents an excellent economic opportunity in the current gold price environment. The PEA states that the most attractive development scenario for the Grassy Mountain project consists of an underground mining operation with a processing plant handling mineralized material, producing a gold-silver dore. A milling base case scenario was developed for the Grassy Mountain project with production of 365,000 tons per year, resulting in a projected nine-year operation with estimated average annual production of 53,000 ounces of gold and 82,000 ounces of silver. Projected life of mine average cash operating costs are $578 (U.S.) per ounce of gold recovered, net of silver byproduct credits. Start-up capital costs are projected to be $119.6-million (U.S.) plus sustaining capital of $24.1-million. The total cost of gold production (including cash operating costs and total capital and contingency costs over the life of the mine) is estimated at $880 (U.S.) per ounce.

At a gold price of $1,300 (U.S.) per ounce and a silver price of $17.50 per ounce, the base case has a $202.9-million (U.S.) pretax net cash flow, a $144.2-million (U.S.) net present value at a 5-per-cent discount rate and an internal rate of return of 32.6 per cent. At $1,500 (U.S.) gold and $20 (U.S.) silver, the total pretax net cash flow increases by 47.5 per cent over the base case to $299.2-million (U.S.), the net present value at 5 per cent increases to $221.9-million (U.S.) and the internal rate of return improves to 45.1 per cent.

MMC chose prices of $1,300 (U.S.) for gold and $17.50 (U.S.) for silver as the base case economic scenario as these prices approximate the trailing three-year averages for gold and silver. The PEA is considered preliminary in nature. Mineral resources are not mineral reserves and do not have demonstrated economic viability. The base case, lower price case and higher price case economic results for the metal price assumptions are as displayed in the table.

                           PROJECTED ECONOMIC RESULTS (U.S.$)

                                                            Base case Lower          Higher         
                                                                      price          price          
                                                                      case           case 

Gold price per ounce                                        $1,300    $1,100         $1,500         
Silver price per ounce                                      $17.50    $15.00         $20.00 
Pretax net cash flow                                        $202.9-   $106.5-million $299.2-million 
                                                            million 
Pretax NPV at 5% discount rate                              $144.2-   $66.5-million  $221.9-million 
                                                            million 
Pretax internal rate of return                              32.6%     19.0%          45.1% 
Operating costs per ounce of gold produced (life of mine)   $578      $580           $577 
Total costs per ounce of gold                               $880      $882           $879           
Produced (includes all                                                                            
capital) 
After-tax net cash flow                                     $157.0-   $89.6-million  $224.5-million 
                                                            million 
After-tax NPV at 5% discount rate                           $107.7-   $52.8-million  $162.6-million 
                                                            million 
After-tax internal rate of return                           27.1%     16.4%          37.4%

Authors and qualified persons

The NI 43-101 technical report was prepared by Metal Mining Consultants Inc. of Highlands Ranch, Colo., under the supervision of Scott E. Wilson, CPG, who is an independent qualified person (as defined under NI 43-101).

Michael F. McGinnis, Calico's project manager/exploration, is the company's designated qualified person for this news release within the meaning of National Instrument 43-101, and has reviewed and validated that the information contained in this news release is consistent with that provided by the qualified persons responsible for the PEA.

The report is now available to the public on SEDAR and accessible through SEDAR, or it may be accessed on the company's website under technical reports.

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