Ortac Resources, a Europe-based exploration and development company, has announced the successful completion of a pre-feasibility study of the turec project, a component of the combined precious metals centre, geothermal heating and integrated tourism project due to be unveiled this month.
The study gave a maiden ore reserve of 13.97m tonnes at 1.9g per tonne (g/t) gold equivalent, containing 873,000 oz gold equivalent, representing the portion of the 1.3m oz gold equivalent that has now been transferred through to the proven and probably ore reserve categories.
Ortac said the turec project base case demonstrates 'good economic viability', with a net present value at an 8.0% discount rate of $145m (post tax) and internal rate of return of 30%, confirming the potential robust value creation for shareholders and the local region.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
The cash operating costs are estimated to be $555 per ounce of gold equivalent, while the pre-production capital expenditure is $124m.
The project has a projected life of 11 years with an average annual production of 71,000 ounces of gold equivalent, and the life of project revenue is estimated to be around $1,046m.
The report made the recommendation to progress to the bankable feasibility stage in order to assess the potential environmental, social and economic impacts and further define the engineering, environmental and social capital requirements for funding.
Ortac Resources Chief Executive Officer Vassilios Carellas said: "We are pleased with the results of this pre-feasibility study which recommends we move to public assessment and consultation.
"The results of the PFS highlight the potential of the turec project to act as an economic engine with the opportunity to drive further local development and co-created businesses.
"Our focus now is to build on the locally viable ideas and undertake an economic, social and environment assessment to help identify potential locally acceptable options to incorporate this economic engine into local development and conservation measures in a way that benefits all stakeholders alike."
March 2024 NS&I Premium Bond winners – check now to see what you've won
If you’re a Premium Bond holder, you can check from today (4 March) for any winnings from NS&I’s March 2024 Premium Bond draw
By Vaishali Varu Published
UK tax year end: full list of HMRC 2023/24 tax codes and what they mean explained
With a new UK tax year now only weeks away, you may be wondering what your tax codes mean.
By Henry Sandercock Published