P2 Gold updates Gabbs PEA to 1.9 million oz. gold equivalent

P2 Gold (TSXV: PGLD; OTCQB: PGLDF) has updated the preliminary economic assessment for its wholly owned Gabbs gold-copper project in the Walter-Lane trend in Nevada. The study gives the project a lifetime production of 1.86 million oz. gold equivalent (1.2 million oz. of gold, 1.7 million oz. of silver, and 327 million lb. of copper). Average annual gold equivalent output will be 139,000 oz. at spot metal prices.

The estimated pre-production capital cost, including contingencies, is US$277.7 million with payback of 3 years. The life of the mine will be 13.4 years.

The updated PEA gives Gabbs an after-tax net present value with a 5% discount of US$292.2 million and an internal rate of return of 17% using prices of US$1918/oz. gold, US$23.01/oz. silver, and US$3.73/lb. copper.

A conventional open pit mine is planned. Ore containing cyanide soluble copper will be heap leached. Oxide and sulphide ores will be processed to create a saleable copper concentrate containing silver and gold doré bars. Dry stacking is planned for the tailings.

More details of the PEA are posted on www.P2Gold.com.