Mr. Hugh Agro reports
REVIVAL GOLD ANNOUNCES RESULTS OF BEARTRACK-ARNETT ECONOMIC IMPACT STUDY
has released the results of an independently written study into the potential economic impacts of the company's Beartrack-Arnett gold project on the local community of Lemhi county and the state of Idaho.
$1.2-billion cumulative contribution to Idaho state gross domestic product (GDP) over an eight-year period (one year of construction and seven years of operation);
858 average annual full-time jobs supported during operations, including multiplier effect, with direct employment of 267 personnel at site plus an additional 506 full-time jobs supported during construction;
$87-million and $121-million of cumulative contribution to Idaho state and federal tax revenues, respectively, over the eight-year project life.
Note: All amounts shown are in U.S. dollars unless otherwise stated.
The study, undertaken by Idaho regional economist Steven Peterson, BS, MS, a long-term associate clinical professor at the University of Idaho in Moscow, Idaho, is based on the results of Revival Gold's preliminary economic assessment (PEA) on the proposed first-phase restart of open-pit heap leach operations at the Beartrack-Arnett gold project located in Lemhi county, Idaho, United States (see news release dated Dec. 18, 2020).
"This study confirms the broad extent of potential economic prosperity a successful restart of the Beartrack-Arnett project offers Lemhi county, the state of Idaho and the nation. The project could have a substantial positive impact on employment, skills development and overall economic activity and would bring a much-needed economic boost directly and indirectly to hundreds of families and local businesses in Idaho. Beartrack-Arnett has the potential to support a peak of more than 1,300 high-wage full-time jobs, representing almost $100-million a year in total compensation, largely in a region that suffers from higher unemployment than the Idaho state average," said president and chief executive officer Hugh Agro.
The PEA outlined a first-phase open-pit mining and heap leach operation producing an estimated 72,000 ounces of gold per year over an estimated seven-year mine life following an initial capital investment of $100-million and a one-year construction period. Including sustaining capital and other expenditures, the total cumulative gross capital investment is estimated to be $207-million. The project would generate an after-tax net present value at a 5-per-cent discount rate of $88-million and an after-tax internal rate of return of 25 per cent at a gold price of $1,550 per ounce, increasing to an after-tax net present value at a 5-per-cent discount rate of $211-million and an after-tax internal rate of return of 49 per cent at a gold price of $1,950 per ounce.
This PEA is preliminary in nature; it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
The study found that, during operations, Beartrack-Arnett will directly employ an average of 267 people per year with an average salary package estimated at approximately $100,000 per person, 80 per cent higher than the average salary package in Idaho and 107 per cent higher than the average salary package in Lemhi county, where the median annual household income is $37,900. Including indirect jobs, approximately 858 full-time jobs will be supported each year by the mine. An additional 506 full-time direct and indirect jobs will be supported during project construction.
Over the course of eight years of expected first-phase operations, total added value to the state's GDP, will be a cumulative $1.2-billion, averaging $152-million annually. This large increase in economic activity will generate significant gains in the state's tax base. Total gains to state and local government coffers are expected to be $84-million cumulatively, averaging $11-million annually.
"Revival Gold is a value-driven company. The company's mission is to deliver growth in gold through responsible exploration and development for the benefit of our owners, our team, and the communities in which we live and work. Helping local stakeholders understand the potential economic benefits of Beartrack-Arnett to their community is part of our commitment. The company is committed to hiring locally, skills development and other sustainable benefits, as well as initiatives to minimize greenhouse gas emissions through technology and the use of Idaho's low-carbon sources of energy," added Mr. Agro.
Revival Gold is advancing Beartrack-Arnett toward a prefeasibility study expected to be completed by year-end 2022. Meanwhile, exploration continues. Interested parties are encouraged to visit the company's website or contact Revival Gold at email@example.com for more information.
Rodney A. Cooper, PEng, a qualified person and a consultant to the company, and Steven T. Priesmeyer, CPG, a qualified person and vice-president, exploration, for the company, are the company's designated qualified persons for this news release within the meaning of National Instrument 43-101, Standards of Disclosure for Mineral Projects, and have reviewed and approved its scientific and technical content.
About Revival Gold Inc.
Revival Gold is a growth-focused gold exploration and development company. The company is advancing the Beartrack-Arnett gold project located in Idaho, United States.
Beartrack-Arnett is the largest past-producing gold mine in Idaho. A preliminary economic assessment has been completed for a first-phase restart of heap leach operations to produce 72,000 ounces of gold per year over an initial seven-year mine life at an AISC (all-in sustaining cost) of $1,057 per ounce of gold. Meanwhile, exploration continues, focused on expanding the current indicated mineral resource of 36.6 million tonnes at 1.15 grams per tonne gold containing 1.36 million ounces of gold and inferred mineral resource of 47.1 million tonnes at 1.08 grams per tonne gold containing 1.64 million ounces of gold. The mineralized trend at Beartrack extends for over five kilometres and is open on strike and at depth. Mineralization at Arnett is open in all directions.
For further details, including key assumptions, parameters and methods used to estimate the mineral resources, and data verification, please see the company's NI 43-101-compliant technical report, titled "Preliminary Economic Assessment of the Heap Leach Operation on the Beartrack Arnett Gold Project, Lemhi County, Idaho, USA, NI 43-101 Technical Report," dated Dec. 17, 2020.
Revival Gold has approximately 71.2 million shares outstanding and had a cash balance of approximately $9.1-million on Dec. 31, 2020. Additional disclosure including the company's financial statements, technical reports, news releases and other information can be obtained on Revival Gold's website or on SEDAR.
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