Pan Project

• Our first +1 Million Ounce Project is under construction
• Project Approach – Simple, Manageable, Financeable
• Low Cost – Open Pit, Heap Leach
• Permitting Complete December 2013
• Pan Production on Track for 2014

 
Pan Feasibility Study Complete – November 2011*
Gold Price $1,200/oz  $1,550/oz  $1,725/oz  $1,900/oz 
NPV5%  $123 mm $235 mm $290 mm $344 mm
IRR 32% 56% 67% 79%
Payback 2.6 yrs  1.7 yrs  1.4 yrs  1.2 yrs 

Feasibility Numbers are After Tax – 35% Federal Tax & 5% State Tax

 

 

 
View NI 43-101 Technical Reports

Geology & Mineralization

The Pan property is located at the northern end of the Pancake mountain range in western White Pine County, Nevada, approximately 22 miles southeast of Eureka, Nevada, and 50 miles west of Ely, Nevada.

Pan is a Carlin-style, epithermal, disseminated, sediment-hosted gold system. The gold mineralization occurs in elongate breccias along the Pan fault, and along sedimentary bedding near unit contacts. Host rocks are dissolution/collapse breccias in the Pilot Shale and, to a lesser extent, the Devils Gate Limestone. The resource outcrops at the surface and is entirely oxide mineralization.

 

Resource Estimate

Resources(1)
Tonnes
Grade
Contained
 
(‘000s)
(g/t)
(‘000s oz)
Measured
36,920
0.49
579
Indicated 
43,118
0.4
551
M&I
80,037
0.44
1,130
Inferred 
3,928
0.36
45
 

Note: Mineral resources are inclusive of mineral reserves reported below. The tonnage and total ounces of gold were determined from the statistical block model. Average grades were calculated from the tonnage and total ounces and then rounded to the significant digits shown. Calculations based on this table may differ due to the effect of rounding.

 

Reserves(2)
Tonnes
Grade
Contained
 
(‘000s)
(g/t)
(‘000s oz)
Proven
25,245
0.6
487
Probable 
23,067
0.51
377
P&P
48,311
0.56
864
 

Note: The tonnage and total ounces of gold were determined from the statistical block model. Average grades were calculated from the tonnage and total ounces and then rounded to the significant digits shown. Calculations based on this table may differ due to the effect of rounding.

 

Mining & Processing

The near-surface Pan gold deposit is ideally suited for open pit mining methods. The pit would have zero pre-strip and a low 1.8:1 life of mine strip ratio. Grade distribution and metallurgical testing show that the ore can be processed by conventional heap leaching methods with an average estimated recovery of 75%. As a result, this shallow, oxide gold deposit can be extracted using simple, low cost mining and processing methods. Pan will be mined from two separate open pits, North and South, for a total mine life of nine years. Ore from both pits will be processed on a central leach pad. 

Pan Project Parameters
Project Capex(3)
$99 Million
Mine Life
9 Years
Life of Mine Production
864,000oz
Average Gold Recovery
75%
Average Annual Production
81,000oz
Cash Cost(4)
$/oz
Fully Loaded Cost(5)
$824/oz
Life of Mine Strip Ratio
1.8:1
Strip Ratio in Payback
<1:1

 
 

 

Footnotes:

(1) Resources as per Independent NI 43-101 Updated Resource Technical Report by Gustavson Associates, LLC (October 2011). Assumes cutoff grade of 0.14 g/t. 

(2) Reserves as per Independent NI 43-101 compliant Feasibility Study by Gustavson Associates, LLC (November 2011). Assumes gold price of US$1,200/oz and cutoff grade of 0.27 g/t (South Pan) and 0.21 g/t (North Pan). 

(3) As per Independent NI 43-101 compliant Feasibility Study by Gustavson Associates, LLC (November 2011). Includes $8.2 mm of working capital and $6.8 mm contingency. An updated report “Updated NI 43-101 Technical Report, Feasibility Study for the Pan Project, White Pine County, Nevada” dated November 29, 2012 was filed to clarify responsibilities of the Qualified Persons. This updated report made no changes in the feasibility study numbers. 

(4) Includes royalties, state tax and 5% contingency. 

(5) Includes total cash cost, initial capital and sustaining capital.

 



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