February 27, 2020 – Vancouver, BC – ATAC Resources Ltd. (TSX-V:ATC) (“ATAC”) is pleased to announce the completion of an updated Mineral Resource and Preliminary Economic Assessment (“PEA”) for the Tiger Deposit, located at the western end of its 1,700 km2 Rackla Gold Property in east-central Yukon.
The 2020 PEA and Mineral Resource update incorporates recent work, including additional diamond drilling, metallurgical testwork, and a revised geological model focusing on better defining high-grade trends.
2020 PEA Highlights:
Highlights from the 2020 PEA, with a base case gold price of US$1,400/oz and an exchange rate of C$1.00 equal to US$0.77 are as follows. Unless specified otherwise, all values are shown in Canadian dollars.
- NPV(5%) of $118.2 million and an IRR of 54.5% before tax, and an NPV(5%)of $85.4 million and an IRR of 42.6% after tax;
- Payback period of 1.24years (pre-tax);
- All-in sustaining cost of US$661/oz;
- Approximately 267,000 ounces of gold produced at an average diluted grade of 3.82 g/t;
- Peak annual production of 72,860 ounces of gold in the first operating year, with an average production of 61,900 ounces of gold per year for the first three years;
- Total project life of seven years, including one year of construction and pre-stripping followed by six years of operation; and
- Pre-production capital costs of $110.1 million.
“The updated geological model and PEA envision a smaller but higher grade operation than contemplated by the 2016 resource and PEA. We are very encouraged by the short payback period and high IRR, which are calculated at a base case substantially lower than current gold prices,” stated Graham Downs, President and CEO of ATAC. “The updated deposit model has also identified strong high-grade trends which are open along strike and at depth. Tiger’s high grades and margins, coupled with nearby satellite targets, provide a compelling case for advancement.”
The Mineral Resource update was completed by Mine Development Associates (“MDA”) of Reno, Nevada. The PEA was completed by Tetra Tech Canada Inc. of Vancouver, British Columbia (mining, processing, infrastructure, financial analysis, environmental); Knight Piesold Ltd. of Vancouver, British Columbia (tailings and waste management); and Blue Coast Metallurgy Ltd (metallurgy) of Parksville, British Columbia.
(See press release)