1911 Gold Delivers Positive PEA for True North Highlighting Robust Economics with Low Capital Intensity and High Returns

Core Viewpoint - 1911 Gold Corporation announced positive results from the Preliminary Economic Assessment (PEA) for the True North Gold Project, highlighting robust economics, low capital intensity, and high returns [1][2]. Group 1: PEA Highlights - The PEA indicates a steady-state production target of 58,114 ounces per annum over an 11-year mine life, with initial production expected to start in H1 2027 and test mining in H2 2026 [1][2]. - Estimated cash costs are US$1,390 per ounce, with an all-in sustaining cost (AISC) of US$1,897 per ounce [1][2]. - The project has an initial capital expenditure of $59.2 million, with additional capital of $46.7 million during the first two years and sustaining capital of $367.2 million over the life of mine (LOM) [1][2]. Group 2: Economic Metrics - The PEA shows a net present value (NPV) of $391 million at a 5% discount rate, an internal rate of return (IRR) of 105%, and a payback period of 2.2 years at a long-term gold price of US$3,000 per ounce [1][2]. - At a constant gold price of US$4,800 per ounce, the NPV increases to $998 million, with an almost immediate payback period of 1.0 year [1][2]. - The project is expected to generate $545 million in undiscounted after-tax free cash flow over its life, supporting approximately 326 full-time jobs [1][2]. Group 3: Mining and Processing - The True North Gold Project will utilize underground mining methods with a total mill feed of 4,066,000 tonnes at an average diluted grade of 4.32 grams per tonne gold, resulting in total payable gold production of 527,100 ounces [1][2]. - The processing facility has historically produced 1.93 million ounces of gold and is expected to achieve an average recovery rate of 93.5% over the LOM [1][2]. - The project includes a Tailings Management Facility (TMF) with sufficient capacity for approximately 775,000 tonnes, allowing for over two years of production under the PEA mine plan [2]. Group 4: Future Opportunities - The PEA results suggest potential for production growth by developing newly discovered zones adjacent to existing infrastructure, such as San Antonio Southeast, San Antonio West, and Shore [1][2]. - The company plans to explore additional resource opportunities within the Rice Lake Greenstone Belt, which includes the Ogama-Rockland gold deposit [2]. - Initiatives to enhance project economics include optimizing processing capacity, implementing advanced backfill solutions, and utilizing sensor-based ore sorting technology [2].