Added Company President and CEO, Mr. William Schara, “We are very pleased with the results of the IA, which underscores the substantial value accretion that Chandalar could bring to Goldrich and its shareholders.
At recent gold prices of around $1,900/oz, the sensitivity analysis shows an undiscounted after-tax cash flow of $95 million, an IRR of 180%, and a Payback Period of 1.2 years.
The block model estimated 47,700 raw ounces compared to actual production of 53,900 raw ounces, which was 12% greater than the estimate.
Capital costs for the project include mining production and support equipment leases that assume 25% down payment of the purchase price and a lease term varying from 20 to 26 quarters, depending on the piece of equipment and when it is needed on the project at 5% interest.
Operating cash costs are based on a surface mine plan, haul cycle analysis, drill and blast cost analysis, with delivery to the remote mining site by either air or by a winter ice road.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, budgets, projections, objectives, assumptions or future events or performance and available on the SEC website or www.goldrichmining.com, as well as the Company’s other SEC filings.
The IA is preliminary and forward-looking in nature and includes inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves under 17 CFR ยง229.1300 – or positively impacted higher grades are encountered.