Tarachi Gold – Preliminary Economic Assessment Released For Magistral Project
Cameron Tymstra, President and CEO of Tarachi Gold (CSE-TRG – OTCQB:TRGGF) joins us to outline the details on the Preliminary Economic Assessment just announced on December 13th on the Magistral Project in Durango, Mexico. This Project includes a 1,000 tpd mill and access to a tailings resource (non-compliant with NI 43-101) estimated to contain 1.3Mt at 2.05g/t Au.
There is a projected average annual gold production of 16,000oz + copper concentrate, with cash operating costs of $648/oz and AISC of $705/oz Au, net of copper and silver by-product credit. Cameron outlined the project economics with a pre-tax IRR of 120% and post-tax IRR of 85% at $1600/oz Au, and pre-tax annual free cash flow of $15.3M USD ($19.3M CAD) in peak years.
We discussed the recent metallurgical testing and successful gold recovery rates of near 80% in the Ausenco Engineering’s studies, and how the company is currently working on permitting. The cash flows from Magistral will be used to aggressively explore the Company’s San Javier and Jabali concessions in Sonora, Mexico that are part of the Tarachi Gold Project. In addition, the company is looking to make an acquisition of a development project in the latter half of 2022, as well as reviewing other adjacent land to Magistral to feed the mill.