Results Indicate Robust Project Economics For Alaskan Project
Goldrich Mining Company (OTCQB:GRMC) has unveiled the results of an independent Initial Assessment Report (IA) for the company’s Chandalar Mine in the Chandalar Gold District in Alaska.
Highlights – At $1,650 Base Case Gold Price:
- After-tax Net Present Value (NPV) (5%) of $64 million and Internal Rate of Return (IRR) of 139%
- $25 million in Undiscounted After-tax Net Cash Flow (NCF) generated by year two and $72 million generated in total.
- All-in sustaining costs of $799 per ounce of gold (Au)
- After-tax payback period of 1.3 years after start of commercial production
- Initial mine life of 7 years with significant potential to extend lifespan
- Project also includes extensive additional upside with higher gold price and resource growth potential
Chairman, William Orchow, commented that due to new amendments recently adopted by the SEC to modernise property disclosure requirements for mining registrants, the preparation of the IA allows Goldrich to disclose Measured, Indicated, and Inferred resources for the first time.
“Goldrich’s primary focus is the exploration and discovery of the hard-rock (lode) targets, while also working to build additional shareholder value by monetising the adjacent placer assets that are derived from the lode targets,” Mr Orchow said.
“Despite challenges over the last five years, our continued focus on the bigger picture has resulted in what is now a significant milestone for Goldrich shareholders – a very strong base-case scenario that demonstrates a moderate initial capex expense and short payback period that will support a low-cost, high-margin gold operation in a politically secure jurisdiction.”
President and CEO, William Schara, said the results of the IA underscores the substantial value accretion that Chandalar could bring to Goldrich and its shareholders.
“The new SEC disclosure rules now allow us, as a U.S. company, to disclose the gold resources we have already discovered at Chandalar. Notably, the report’s price sensitivity analysis shows that at recent gold prices around $1,900/ounce, the after-tax cash flow is approximately ten times our current market cap.
“Also, the deposit is open to expansion which could significantly increase the project’s already stellar economics.”
For more information visit https://www.goldrichmining.com/
