by Ewan Downie
We’re extremely happy, and proud, to release the Feasibility Study for the Hardrock Project just south of Geraldton.We collared the first drill hole that led to a significant discovery beginning in early 2009 and nearly 8 years later we have a Feasibility Study in hand. It was four years ago this month that the Premier management team sat down with our Senior Technical advisor and conceived the concept that the Hardrock Project would be best served as an open pit mining opportunity for mineralization within 500 metres of surface rather than an underground mineable opportunity only.
The feasibility study reports on a project with strong economics over a 14-year mine life. However, we believe it is critical that investors understand the difference between the stated Feasibility Study results and how those results are reflected within Premier Over the course of the last decade, Premier has accumulated significant tax loss pools as a result of our ongoing exploration programs.For Premier shareholders and potential investors, this is a meaningful difference. When recalculated to reflect these realities, the project economics, on an IRR basis, are very similar to what was reported by Premier in the early 2014 PEA. The sensitivity results outlined in the press release show how a changing gold price environment will impact investor returns on the project. Please take time to understand this nuance.Hardrock is a robust deposit located in a favourable mining jurisdiction and we are excited to be advancing this project to what we hope will be a production decision upon receipt of permits.
Finally, we are very excited as well for our community partners in the region that stand to benefit from a project whose peak employment levels will exceed 500 personnel and will leave the nearby Kenogamsis Lake cleaner at the end of the mine life than it is today. This project is a win for the environment and that’s the way it should be. The Greenstone Gold team has already prepared to present the Feasibility Study locally, and I hope everyone who can be present take the opportunity to meet with them.
We still see plenty of opportunity for new discoveries to be made within the region. Once new mining infrastructure, such as a processing facility, is in place the cost of developing newly discovered orebodies to production is potentially much lower. Our goal is to maintain production at Trans-Canada far longer than the initial 14 year mine life identified in the feasibility study.
Kudos to our Greenstone Gold team!