TMAC Resources Completes Robust Pre-Feasibility Study on the Hope Bay Gold Project
Press Releases
TORONTO, April 24, 2015 – TMAC Resources Inc. (“TMAC” or the “Company”) is pleased to announce the successful completion of its Pre-Feasibility Study (“PFS”) on its 100% owned Hope Bay Project (the “Project”) located northeast of Yellowknife in the Kitikmeot region of Nunavut, Canada. The PFS establishes new Proven and Probable Reserve estimates for the Project based on the Mineral Resources estimate released in January, 2015. The PFS also updates the Mineral Resource estimate for Boston. The PFS has an effective date of March 31, 2015 and has been prepared in accordance with National Instrument 43-101 of the Canadian Securities Administrators (“NI 43-101”) by RPA Inc. (“RPA”) of Toronto, Ontario, Canada, which has extensive worldwide experience in a variety of mining projects including many in the Canadian Arctic.
The PFS supports the sequential development and underground mining of the three known deposit trends at Doris, Madrid and Boston. The development plan in the PFS includes conventional high-grade underground mining that makes use of significant existing surface and underground infrastructure. The updated Mineral Resources estimate in the PFS includes 4.5 million ounces of gold in the Measured and Indicated categories, as well as TMAC’s first reported Proven and Probable Reserves estimate of 3.5 million ounces in support of an initial 20 year mine life. Due in part to the pre-existing on-site infrastructure, capital and operating costs are expected to be low relative to underground gold mining industry averages, with the PFS forecasting operating costs and all-in sustaining costs of US$638 and US$785 per ounce, respectively. With low pre-production capital costs of US$175 million (C$206 million), the base case in the PFS estimates that the Project will generate a robust pre-tax internal rate of return (“IRR”) of 44% and a post-tax IRR of 40%. By leveraging the existing advanced infrastructure at the Project, the PFS estimates that TMAC would realize a 1.7 year payback on modest up-front capital requirements.
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