New Age reports positive PEA for River Valley project

New Age Metals of Vancouver has received the preliminary economic assessment for its 100% owned River Valley platinum group metals project 100 km from Sudbury. The study demonstrates positive economics for a large open pit that would produce palladium and platinum for 14 years, according to the company.

Pre-production capex requirements stand at $495 million. The mill would treat 6.0 million tonnes of ore annually at an average grade of 0.88 g/t palladium equivalent and a process recovery rate of 80%. Annual production would be 119,000 oz. of palladium. A contractor is to be hired to mine the pit.

New Age says the project carries an after tax net present value with a 5% discount of $139 million, and an internal rate of return of 10%. Payback of the capex would occur after 7.0 years. Cumulative undiscounted cash flow is estimated at $384 million.

Resources at River Valley include 99.3 million measured and indicated tonnes at 0.52 g/t palladium and 0.20 g/t platinum; and 52.3 million inferred tonnes at 0.31 g/t palladium and 0.15 g/t platinum. The mineralization also hosts measurable amounts of gold, copper, nickel and cobalt.

This story first appeared in the Canadian Mining Journal