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Auryn Resources delivers positive preliminary economic assessment outlining high-grade, low-cost gold operation at Homestake Ridge

The report highlights a net present value of US$108 million with an internal rate of return of 23.6% at an all-in sustaining cost of US$670 per ounce

Auryn Resources Inc -
Homestake Ridge is a 7,500-hectare gold project located in the highly prolific Golden Triangle area of northwestern British Columbia

Auryn Resources Inc (TSE:AUG) (NYSEAMERICAN:AUG) has delivered a new report on its Homestake Ridge gold project outlining the deposit’s potential for a high-grade underground gold mine.

In an update, the company shared a new preliminary economic assessment (PEA) on Homestake Ridge, highlighted by a net present value of US$108 million with an internal rate of return of 23.6% at an all-in sustaining cost of US$670 per ounce using a US$1,350 per ounce gold price scenario.

Chairman Ivan Bebek said the company took a conservative approach to the gold price in the PEA, but with gold currently hovering around US$1,650, the project’s net present value becomes over US$173 million with an internal rate of return of 32%.

READ: Auryn Resources closes additional C$4.9M in non-brokered private placement

"This is an early look into the Homestake Ridge high-grade gold project's current value, which demonstrates a highly profitable deposit with a low capex in an established mining jurisdiction, and importantly, it is open for considerable expansion,” Bebek told shareholders in the statement Wednesday.

Homestake Ridge is a 7,500-hectare gold project located in the highly prolific Golden Triangle area of northwestern British Columbia. Over 90,000 metres of drilling across nearly 275 holes have been completed on the property to date.

According to a 2019 resource estimate, the project contains an indicated resource of 165,993 ounces of gold at a grade of 7 grams per ton (g/t), 1.8 million ounces of silver at 74.8 g/t and 2.9 million pounds of copper at a grade of nearly 0.2%.

Other highlights from the PEA include pre-production capital costs of US$88 million and 900-ton-per-day operation over a 13 year mine life.

"The Homestake Ridge gold project is a valuable part of our portfolio, which also includes multiple tier-one exploration opportunities, such as Sombrero and Curibaya in southern Peru and Committee Bay in northern Canada,” Bebek said. “We are very much looking forward to advancing our portfolio as we continue to see improving metal prices."

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

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Price: 2.95 CAD

TSX:AUG
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