In a recent feasibility study (FS) conducted by DRA Global, Cerrado Gold's Monte do Carmo project in Brazil is projected to have an after-tax net present value (NPV) of $401.4 million and an internal rate of return (IRR) of 34% over a nine-year mine life. The study supersedes the updated preliminary economic assessment from 2021.
The Monte do Carmo project anticipates an average annual gold output of 94,797 ounces at an all-in sustaining cost (AISC) of $711 per ounce. The initial capital expenditure for the project is estimated at $186.6 million. Production is expected to commence at 1.92Mtpa at the Serra Alta and Gogo (NASDAQ:GOGO) Do Onca deposits, totaling 709,920 ounces.
The project also anticipates adding 143,252 ounces from underground development starting in the fourth year of operations. The average annual free cash flow is expected to be $90 million, with a total cumulative after-tax free cash flow of $607 million over the life of the mine.
Initial Proven and Probable Reserves for the Monte do Carmo project are estimated at 895 koz. Updated Measured and Indicated Resources stand at 1,012 koz, while Inferred Resources are estimated at 66.1 koz.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.