Desert Gold Delivers Positive PEA for SMSZ Project with USD $24M After-Tax NPV (10%) and 34% IRR at USD $2,500/oz Gold for Barani and Gourbassi Deposits in Mali

Core Insights - Desert Gold Ventures Inc. has announced a positive Preliminary Economic Assessment (PEA) for its SMSZ Gold Project in Mali, highlighting a robust economic outlook with an after-tax NPV of USD $24 million and an IRR of 34% at a gold price of USD $2,500 per ounce [1][3][10]. Project Overview - The SMSZ Gold Project includes the Barani and Gourbassi deposits, with a projected production capacity of approximately 18,300 tonnes per month, translating to 220,000 tonnes per annum over a mine life exceeding 17 years [2][5]. - The PEA indicates a total of 113,500 ounces of gold contained, with an estimated recovery of 97,600 ounces through a gravity and CIL processing method, achieving an average metallurgical recovery of 86% [3][25]. Financial Metrics - At a gold price of USD $2,500 per ounce, the project yields an after-tax NPV (10%) of USD $24 million, an IRR of 34%, and a payback period of 3.25 years [3][10]. - If the gold price rises to USD $3,366, the after-tax NPV increases to USD $54 million, with an IRR of 64% and a payback period of 2.5 years [4][10]. Capital and Operating Costs - The initial capital expenditure is estimated at USD $15 million, with sustaining capital costs projected at USD $9 million over the life of the mine [7][19]. - The all-in sustaining cost (AISC) is estimated at USD $1,352 per ounce, with total cash costs at USD $34.80 per tonne processed [22][24]. Production and Resource Estimates - Average annual gold production is estimated at 5,500 ounces, with total payable gold production projected at approximately 97,600 ounces across both deposits [16][25]. - The total Measured and Indicated (M&I) Resources stand at 11.12 million tonnes grading 0.94 g/t Au for 336,800 ounces, while Inferred Resources total 27.16 million tonnes grading 1.01 g/t Au for 879,900 ounces [27][28]. Mining and Processing Plan - The mining plan is structured in two phases, starting with open-pit operations at Barani East and transitioning to Gourbassi, utilizing a modular processing plant to minimize initial capital costs [5][20]. - The project is designed for conventional open-pit mining methods, targeting shallow oxide and transitional materials, with no underground mining planned at this stage [34][35]. Next Steps - The company is in advanced discussions with potential partners for funding to commence construction at Barani East and is evaluating various funding options [64]. - Additional geotechnical work and new drill programs are being planned to optimize the pit design and expand existing gold zones [66].