GMV Minerals sees open-pit gold mine in Arizona

GMV Minerals (TSXV: GMV; US-OTC: GMVMF) has released the results of an updated preliminary economic assessment (PEA) for its wholly owned Mexican Hat gold project in southeastern Arizona, 116 km from Tucson.

The PEA outlines an open-pit heap-leach mine with a mine life of 10 years, producing a total of 525,000 oz. gold at average all-in sustaining costs (AISCs) of US$1,136 per ounce.

Initial capex is pegged at US$67.85 million, and the payback period would be just under three years. The early-stage study estimates an after-tax net present value of US$100 million, at a 5% discount rate, with an after-tax internal rate of return of 29.3%, at a base case gold price of US$1,600 per ounce.

The PEA is based on an inferred resource estimate of 36.73 million tonnes grading 0.58 gram gold per tonne for 688,000 contained oz. gold.

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