SMOFF - Sonoro Gold releases positive PEA study on the Cerro Caliche gold project in Mexico

(NewsDirect)

Sonoro Gold Corp CEO Kenneth MacLeodjoined Steve Darling from Proactive to announce the positive outcomesof an independent Preliminary Economic Assessment (PEA) conducted onthe Cerro Caliche gold project in Mexico.

The assessment offers a promising glimpse into the project'spotential viability as a nine-year life-of-mine open pit, heap leachmining operation.

The PEA outlinesa production plan characterized by an initial two-year production rateof 4,000 metric tonnes per day, followed by a subsequent increase to12,000 for the remaining life of the mine.

MacLeod highlighted key figures derivedfrom the PEA. Notably, over approximately 30% of the project area, theresults are positive, with a pre-tax net present value (NPV)discounted at 5% amounting to $71.4 million.

Furthermore, the pre-tax internal rate ofreturn (IRR) stands at an impressive 59%, while the after-tax NPV5reaches $47.7 million with an IRR of 45%. The assessment alsoindicates gold recovery of 72% and silver recovery of 27%.

Regarding project costs, the initialcapital expenditure (CAPEX) is projected at $15.5 million, whichincludes a contingency of $1.83 million. The payback period isestimated to be 2.9 years, underscoring the financial feasibility ofthe endeavour.

The PEA not onlypresent a snapshot of the project's potential but also hints atadditional opportunities. Parallel and strike extensions to thecurrent vein trends offer prospects for further exploration andexpansion, thereby enhancing the project's long-termprospects.

As the projectprogresses, the company anticipates the initiation of explorationdrill programs to capitalize on these additional opportunities.

Contact Details

Proactive Canada

+1604-688-8158

na-editorial@proactiveinvestors.com

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