Patriot Gold Announces Filing Of Amended Preliminary Economic Assessment For Moss Mine Project
LAS VEGAS, June 21, 2013 /PRNewswire/ -- Patriot Gold Corp. (OTC: PGOL) or ("Patriot Gold" or the "Company"), a developing gold and silver production and exploration company, announced the expected filing of an amended Preliminary Economic Assessment ("PEA") for the Moss Mine Project, dated June 18, 2013.
The principal conclusions of the Amended PEA are generally consistent with the original amended PEA that was disclosed in Patriot Gold's April 10, 2013 news release. A summary of the changes to the previously highlighted results from the April 10th news release is described in the table below:
| April 10, 2013 Amended PEA |
June 18, 2013 Filed Amended PEA |
Notes |
| Mine life of five years, 5000 tpd, 42,000 AuEq oz/yr |
No change from previous report |
|
| Pre-tax IRR of 117.9% |
No change from previous report |
|
| Pre-tax payback of 15 months |
No change from previous report |
|
| Pre-tax NPV @ 5% $110 million |
Pre-tax NPV @ 5% of $105 million |
The change is the result of the application of a 2% NSR royalty |
| Capital expenditures $26.6 million |
No change from previous report |
|
| Capital/average annual AuEq oz production $633/oz |
No change from previous report |
|
| Cash costs/AuEq oz $490/oz |
No change from previous report |
|
| Metallurgical recoveries of 75-85% for gold and 55-77% for silver |
No change from previous report |
|
| *All figures are in USD unless otherwise stated, are based on a gold price of $1,500/oz and predictions that 100% of the Phase I and II mineral resource will be minable. |
||
"We are excited about the completion of the amended filing and the progress this indicates for the Moss Mine project," said Bob Coale, CEO of Patriot Gold. "We are committed to implementing the recommendations of the amended PEA and working toward establishing a pilot operation to test the technical and economic assumptions of this report. We look forward to continuing to update our shareholders our progress on this exciting project."
A link to the amended PEA is on the company's website at www.patriotgoldcorp.com. The amended PEA includes the following:
- Enhanced disclosure of the qualifications of the responsible Qualified Persons ("QP") who co- authored the report as well as the addition of Robert Lambeth, P.Eng to the QP team;
- Augmented information about the rationale for the channel-shaped "trench" open pit model for the near-surface Moss vein stock-work system versus using underground mining methods to mine the deposit.
- Additional description of the geology of the Moss vein stock-work mineralized system to further assist the reader in assessing the open pit mining model used in the report versus using underground mining methods.
- Further disclosure about the prior underground mining and its minimal effect on the estimated resource base.
- Additional information about the choice of a 0.3 grams/tonne cut-off for the resource estimates included in the PEA.
- Additional explanation of the oxide/non-oxide nature of the deposit and the influence of that on metallurgical recoveries.
- Further explanations of the extensive surface, and subsurface, geotechnical work carried out on the Moss Mine rock structures.
- Effects of the approximately 2% NSR royalty on the Moss Mine Gold-Silver Project economics.
- Additional sensitivity analysis to show the effect of percentage changes in metals prices, capital costs and operating costs on the project's base case economics.
- Inclusion of updated consensus price forecasts information as part of the $1500/ounce gold and $30/ounce silver price assumptions.
- Information about the tax structure in the jurisdiction in which mining would take place and recognition that while tax effects are not quantified they will reduce project net present value and internal rate of return.
- Revised recommendation to increase drilling (and related assaying and reporting) from 2200 to 3700 meters at an approximate additional cost of $442,000 ($904,000 total cost of drilling). The PEA conclusions are not dependent on the outcome of the drilling which is designed with the goal of upgrading resources lying outside of the first two phases of the project.
The Company reiterates that the Amended PEA is preliminary in nature and that there is no certainty that the preliminary economic assessment will be realized.
About Patriot Gold
Patriot Gold Corp. is a developing precious metals exploration and production company with the mission to discover and develop significant gold and silver assets. Headquartered in Las Vegas, Nevada, Patriot Gold currently holds a portfolio of two projects in Nevada (Bruner and Vernal) and its flagship Moss Mine Project in Arizona, each at varying stages of development from grassroots to advanced exploration and resource development. For more information, go to our website at www.patriotgoldcorp.com.
Disclaimer: This announcement may contain forward-looking statements which involve risks and uncertainties that include, among others, limited operating history, limited access to operating capital, factors detailed in the accuracy of geological and geophysical results including drilling and assay reports; the ability to close the acquisition of mineral exploration properties, and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. More information is included in the company's filings with the Securities and Exchange Commission, and may be accessed through the SEC's web site at http://www.sec.gov.
Investors:
Patriot Gold
702-456-9565
SOURCE Patriot Gold Corp.
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