Fury Gold Mines (TSX, NYSE-A: FURY) sees quicker ways to production after a preliminary economic assessment (PEA) released this month on its Eau Claire gold project in Quebec modelled three development paths, said CEO Tim Clark.
The plan includes possible toll milling at a third-party plant. The study shows stronger-than-expected returns and gives the company a clearer framework for financing discussions.
“The takeaway is this Eau Claire resource is a lot more profitable than I think everybody thought it was,” Clark told The Northern Miner this month at the Precious Metals Summit in Beaver Creek, Colorado.
Fury’s base case, which uses a gold price of $2,400 per oz. and includes full on-site processing, returned an after-tax net present value at a 5% discount rate (NPV) of C$554 million ($402 million) and an internal rate of return (IRR) of 41%.
A hybrid case, starting with two years of toll milling before transitioning to on-site processing, showed an NPV of C$610 million and a 53% IRR. A full toll-milling option, sending all ore off-site for processing, generated an NPV of C$639 million and an IRR of 84%.
Initial capital costs in the PEA are estimated at C$217 million for the base case, C$161 million for the hybrid, and C$117 million for toll milling, with after-tax payback ranging from 2.5 years for toll milling to 1.1 years for the base case.
Watch the full interview below:
Joint venture videos are paid-for content in partnership with The Northern Miner.
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