Garrison PEA

Moneta’s recent acquisition of O3 Mining’s Garrison project asset makes the Tower Gold Project one of the largest undeveloped gold projects in North America.

The Garrison property includes approximately 4 kilometres of the regionally significant Destor-Porcupine Fault System, a major crustal break.

An independent PEA study (NI 43-101 report by Ausenco Engineering Canada (“Ausenco”), dated January 27th, 2020 with an effective date of November 25th,2020 entitled “NI 43-101 Technical Report & Preliminary Economic Assessment of the Garrison Project”) was completed on the Garrison deposits for an 11,000 tonnes per day open pit mining and carbon in leach processing operation with production spanning 12 years. The PEA delivers robust economics with an after-tax IRR of 33.0% and after-tax NPV of $321M at a US$1,450/oz gold price, with very attractive cash costs and AISC (All in Sustaining Costs), low CAPEX and low capital intensity. The project will target production in excess of 121,000 ounces gold per year during years 1 to 8, while peaking at more than 155,000 ounces in Year 2. (O3 Mining press release dated December 14th, 2020).

The PEA was prepared by Ausenco in accordance with National 43-101 – Standards of Disclosure for Mineral Projects.

Highlights of the PEA*

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

  • Long-term gold price: US$1,450/oz
  • Exchange rate: C$1.00 = US$0.75
  • After-tax net present value (“NPV”) at 5% discount rate: $321 million
  • After-tax internal rate of return (“IRR”): 33.0%
  • After-tax payback period: 2.3 years
  • Initial capital (“CAPEX”): $267 million for a 4.0 million tonne per year processing plant including mine preproduction, infrastructure (roads, power line relocation, tailings facility, ancillary buildings, and water management)
  • Life of mine (“LOM”): 12 years
  • Average LOM strip ratio (waste: mined resource): 2.7
  • Total mill feed of 47.3 million tonnes resulting in LOM gold production of 1.1 Million oz
  • LOM Plan: 82% of total mill feed was sourced from mineral resources classified in the Measured and Indicated category
  • Average annual gold production of 121,000 oz in years 1 to 8 (94,000 oz for LOM)
  • Average mill head grade of 1.04 g/t gold in years 1 to 8 (0.82 g/t for LOM)
  • Average mill recovery: 89.8%
  • Measured and Indicated Mineral Resource of 66.3 Mt at 0.86 g/t Au grade
  • Cash Cost: US$721/oz
  • All-in Sustaining Cost (“AISC”): US$818/oz 

* Cautionary Statement: The reader is advised that the PEA summary is intended to provide only an initial, high-level review of the project potential and design options. The PEA mine plan and economic model include numerous assumptions and the use of inferred mineral resources. Inferred mineral resources are considered to be too speculative to be used in an economic analysis except as allowed for by NI 43-101 for PEA studies. There is no guarantee that inferred mineral resources can be converted to indicated or measured mineral resources, and as such, there is no guarantee the project economics described herein will be achieved.