LONDON – Metals Exploration PLC (AIM: MTL), a specialist gold production and development company, has announced initial estimates from its internal studies on the La India gold project in Nicaragua. The findings indicate a significant improvement over the 2022 Feasibility Study (BFS) conducted by SRK Consulting, with extended Life of Mine (LoM) and increased annual gold production.
An internal study indicates that the La India LoM could be extended from 8.4 years to 12.4 years, with a potential doubling of annual gold production from 71,600 ounces to 145,000 ounces. Estimated gold grade also increased from 2.56 grams per tonne (g/t) to 3.53 g/t, and forecast total gold production across the LoM increased from 548,000 ounces to 1.8 million ounces. These estimates maintain a commodity price assumption of $2,500 per gold ounce.
Despite promising projections, expected initial capital expenditure (Capex) for La India rose modestly from $116 million to $122 million, while total sustaining cost per ounce of gold is expected to rise from $1,058 to $1,176. The project’s net present value (NPV) at a 6% discount rate is estimated at $882 million, with an internal rate of return (IRR) of 54%, down from 71% previously.
Metals Exploration aims to start production at La India by the end of 2026. To match the increased production potential, the company is finalizing negotiations to purchase a second-hand facility capable of processing 1,400 kilotonnes per annum (Ktpa) of ore. An engineering firm is expected to be appointed in February 2025 to begin construction designs, with exploratory drilling and construction beginning in April and May 2025, respectively.
Darren Bowden, CEO of Metals Exploration, expressed satisfaction with the company’s progress and readiness to begin construction. He emphasized the strategic importance of La India in replacing the cash flow from the Runruno mine, which is nearing the end of its working life.
The above information is based on the press release of Metals Exploration PLC.
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