Altus Strategies PLC (AIM:ALS, TSX-V:ALTS, OTCQX:ALTUF) released its preliminary economic assessment for its Diba & Lakanfla gold project in Western Mali.
The new study is based around an updated resource estimate which shows Diba & Lakanfla contain 312,000 ounces of gold in the indicated category and a further 362,000 ounces inferred.
The plan is to construct an open pit heap leach mine with a 4.7 year life.
The estimated net present value of the project is US$150mln, and payback will be just 5.7 months.
All-in sustaining costs are pegged at US$686 per ounce.
Altus also said the project hosts numerous targets that provide potential for further growth.
The company plans to monetise the project and create a royalty, in line with existing strategy.
"We are delighted to announce the significant increase in the mineral resource estimate at the company's 100%-owned Diba & Lakanfla gold project in western Mali,” said Altus chief executive Steven Poulton.
“The updated PEA generates an impressive US$150mln after-tax NPV8, for the oxide portion alone of the project. The PEA envisages a simple low-cost and low-strip ratio open-pit gold mine, using standard heap-leach processing for oxide ores. The mineral resource estimate also identifies approximately 12 million tonnes of fresh sulphide material which could add additional ounces to an enlarged mine.”