- Sanbrado updated feasibility study confirms:Average annual...

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- Sanbrado updated feasibility study confirms: Average annual production of 211,000 ounces gold over first 5 years of mine life 76% increase in Probable Reserves to 1.6 million ounces (20.4Mt at 2.4g/t gold) 16 month post-tax pay back on US$185 million pre-production capital costs All-In Sustaining Costs (AISC) of US$551/oz over first 5 years and US$640 over life of mine Pre-tax NPV5% of US$567m (A$754m) and pre-tax IRR 62% Post-tax NPV5% of US$405m (A$540m) and post-tax IRR 49% Environmental approval granted, updated mining licence expected Q3 2018 Discussions with project lenders in progress, debt package expected by end Q4 2018 - Mineral Resource Estimate (MRE) upgrade includes: 40% increase in Indicated Resources at M1 South to 780,000oz gold, (1.5Mt at 15.9g/t Au) Project MRE now 2.35Moz gold Indicated, 0.55Moz gold Inferred - Substantial further upside to Project through: Recent high-grade beneath reserves shows scope to extend life past 4.5 years at M1 South Scoping Study to investigate underground potential of M5 Potential to increase plant throughput and compress mining schedule in later years Managing Director Richard Hyde commented: “The Company's updated feasibility study confirms that Sanbrado is a high margin gold project, producing 211,000 ounces per annum at AISC of US$551/oz over the initial 5 years of mine life. The project is robust, generating an after-tax IRR of 49% and paying back capital in less than 16 months. Recent high-grade intercepts including 11m at 10.5g/t Au and 6m at 24.4g/t Au in TAN18-DD189, located 70m beneath current resources and reserves, provide scope to improve project value further. A Scoping Study has also commenced focussing on the underground potential of M5. Drilling at M1 South and M5 is ongoing, with further resource and reserve updates expected by year end. Discussions with project financiers are underway and the Company expects to be in a position to appoint a banking syndicate by Q4 2018.” Click here to view the full ASX announcement