Cora Gold (CORA) released the initial scoping study for the Sanankoro Gold Project on Thursday, which forecasts a $30.9m NPV and an 84% IRR.
The scoping study, done by Wardell Armstrong International, also forecasted over $19m per year of average free cash flow, assuming a $1400 gold price, with an ASIC of $942 per oz.
The project is forecast to produce 45,000 oz of gold per year from a 1.5Mtpa Heap Leach Mine, and Cora Gold highlighted an additional exploration target of 1.2Moz of gold at 100m depth.
The study expects $20.6 million of pre-production capital expenditure, and a payback period of less than 18 months.
Shares were trading 4% higher at 6.5p during Thursday afternoon
Bert Monro, CEO of Cora, commented, "This Scoping Study shows Sanankoro has the potential to be a highly profitable standalone oxide mine, delivering a high IRR and short capex payback, with an annual average free cash flow of over US$19m at a US$1,400 gold price.”
He said: “The key will be to drill out more oxide resources to extend the mine life and sustain the cash flow well beyond this maiden study. To date, we have only drilled c.25% of the total strike length of the potential mineralised zones identified on the permit area.”
“Drilling is currently ongoing and SRK's defined exploration target remains 1-2Moz gold to a depth of just 100m. We have already identified areas where optimisations can occur, and it has helped us immensely in defining the strategy for the ongoing drill campaign at Sanankoro.”
"This is a great start to 2020 and we are confident that positive news flow will be generated throughout the coming months as our understanding of this exciting project increases."
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