- Argonaut Gold (TSX:AR) has updated its life of mine plan for the Florida Canyon mine in Nevada
- The new life of mine plan outlines a 9.5-year operation producing 77,000 gold ounces annually
- The new mining plan has resulted in an estimated net present value of C$314.65 million
- The company secured 100 per cent of the rights to the property after it merged with Alio Gold Inc earlier this week
- Argonaut Gold (AR) is up 0.69 per cent and is trading at $2.90 per share
Argonaut Gold (TSX:AR) has updated its life of mine plan for the Florida Canyon mine in Nevada.
The company secured 100 per cent of the rights to the property after it merged with Alio Gold earlier this week.
The new mine plan outlines a 9.5-year life at the site, producing an average of 77,000 gold ounces per annum.
The company envisages an average cash cost per ounce of approximately $1,193 per ounce, with an all-in sustaining cost of $1,424 per gold ounce.
Argonaut has stated a net present value of approximately $314.65 million. The new estimate results in approximately $442.11 million in after tax free cash flow, at a sale price of approximately $2,305 per gold ounce.
The price of gold per ounce currently sits at $2,406, which is historically high due to gold’s reputation as a safe haven investment during market volatility.
Pete Dougherty, President and CEO of Argonaut Gold, said the company has upgraded its life of mine plan to reflect the best value for money for shareholders.
“The second half of 2020 will be dedicated to making the additional capital investments in the crushing and stacking system and ancillary equipment to ensure we can reap the benefits of lower operating costs in 2021 onward.
“Beyond the current 9.5-year life of mine plan, we continue to see opportunities where investment in exploration at both the Florida Canyon mine and the nearby Standard mine has the potential to add oxide ore, as well as the longer-term potential of evaluating transitional and sulphide ores,” he said.
Argonaut Gold (AR) is up 0.69 per cent and is trading at $2.90 per share at 1:00 pm EDT.