On June 23, Anaconda Mining released the results of the preliminary economic assessment (PEA) for its Goldboro gold project in Nova Scotia, which, according to the company, demonstrates “the potential for strong economics from both open-pit and underground mine operations over an estimated 17.6-year life of mine (LoM).”

The mineral resource estimate found total measured and indicated resources of 1,946,100 troy ounces of gold, grading 3.78 grams per tonne, from 7,521,000 tonnes of ore. Based on this, and a gold price of $2,000 per ounce, the PEA estimates an after-tax net present value of $547 million at a five per cent discount rate, with an internal rate of return of 24.4 per cent and an after-tax payback of 3.2 years. The total initial capital investment at Goldboro is estimated at $286 million, with total LoM sustaining capital costs of $269.2 million. The project is expected to process 4,000 tonnes per day with operating costs estimated at $68.92 per tonne milled and an average all-in sustaining cost per ounce sold of $1,031.

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Kevin Bullock, president and CEO of Anaconda, suggested that there may be room for future expansion of the mine: “Importantly, the Goldboro deposit is open in all directions and the company is initiating exploration to the west of the deposit, towards the past-producing Dolliver Mountain gold mine. We believe Goldboro has potential to be a multi-generational gold mine, which can create significant value for our shareholders and project stakeholders, including the community of Guysborough and the Mi'kmaq of Nova Scotia."

The company stated that the next step will be to “execute the mine plan outlined in the PEA in phases,” starting with a feasibility study on the first 10 years of surface mining at Goldboro, anticipated for Q4 of 2021. Following that, it will file an environmental assessment registration document.