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Moneta says PEA for Tower Gold near Timmins good for 24 years!

Sep 8, 2022

Moneta Gold Inc. (TSX: ME) (OTCQX: MEAUF) (XETRA: MOP) has announced positive results from a Preliminary Economic Assessment ("PEA") for the Company's 100% owned Tower Gold project in Timmins. The PEA, prepared by Ausenco Engineering Canada Inc. ("Ausenco") in accordance with National Instrument 43-101 ("NI 43-101"), demonstrates the potential to develop a low-cost 19,200 tonnes per day ("tpd") combined open pit and underground mining operation with strong economics and the opportunity for significant benefit to the Indigenous Nations, local stakeholders, and the Company.


(All figures are stated in Canadian dollars unless otherwise stated)

  • Low capital intensity project, with initial capital ("CAPEX") of $517 million for a 7.0 million tonne per annum ("tpa") processing plant including mine preproduction, infrastructure (roads, power line and substation, tailings storage facility, ancillary buildings, and site water management structures) and $886 million sustaining capital
  • After-tax pay-back of 2.6 years and profitability index (NPV/initial capital) of 2.1
  • Robust economics with $1,459 million pre-tax Net Present Value at a 5% discount rate ("NPV5%"), $1,066 million after-tax, and 38.9% pre-tax Internal Rate of Return ("IRR"), 31.7% after-tax; at US$1,600/oz gold and exchange rate of US$0.78/C$
  • Highly leveraged to the gold price with after-tax NPV5% of $1,339 million, 37.8% IRR, and 2.2-year payback at spot US$1,700 per ounce gold
  • $1,932 million cumulative after-tax cash flow
  • Mine life of 24 years, with average annual gold production of 261,014 oz in years 1 to 11 (192,666 oz for LOM) for 4,581,000 ounces total gold production LOM
  • Peak annual gold production of 368,622 ounces
  • Average mill head gold grade of 1.28 grams per tonne ("g/t") gold ("Au") in years 1 to 11 (0.94 g/t Au for LOM)
  • Average mill recovery of 91.3% LOM
  • Cash cost of US$910 per ounce and all-in sustaining cost ("AISC") of US$1,073 per ounce gold
  • Opportunities to increase production and expand and improve economics of resources

Gary O'Connor, Moneta's President and Chief Executive Officer commented, "We're very pleased with the results of this PEA, which has outlined a strong base-case for a significant and highly profitable new gold mine in Ontario. Our robust base case at US$1,600 per ounce gold price for the project supports a 24-year mine life with average annual production of 261,014 ounces of gold for the first 11 years with an after-tax NPV of $1,066 million and IRR of 31.7%, with very attractive cash costs and AISC, low CAPEX and low capital intensity. This PEA confirms the potential for a robust gold project with compelling project economics and represents an important interim update on the progress of our work program at Tower Gold. In 2022, we will continue to focus on in-fill and definition drilling to better define resources and improve the economics of the resource through increasing grades and lowering strip ratios, while also identifying new targets."

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