(Ecofin Agency) - Algold Resources reported that its Tijirit gold mine (Mauritania) is expected to generate $717.4 million all along its 7.1-year lifespan. This is revealed in the Preliminary Economic Assessment (PEA) conducted by Ausenco Engineering Canada.

The evaluation revealed that the post-tax net present value is expected to reach $69 million at an 8% discount rate with an internal rate of return of 23.5%, using a gold price of $1,250 per ounce. The company would need $96.4 million of direct capital cost, in addition to indirect costs of $31.2 million and a contingency allowance of $17.9 million to bring the mine into production.

“The positive PEA marks a significant milestone for Algold Resources. In less than two years since embarking on the Tijirit endeavor in March 2016, we are in receipt of positive PEA results that confirm the significant potential of the project,” CEO Benoit La Salle said.

Let’s note that the mine will be developed in two stages. First, it will produce 104, 500 oz per year over four years while it will annually produce 53,000 oz over three years during the second stage.

Louis-Nino Kansoun