LMV-H.V Dr Air I had a look since h=the punch line sounded interesting. My observations from about 10 Min of DD.
PEA Comes from Stantec. That's a first class conservative operation not willing to risk their reputation.
A National Instrument 43-101 independent Technical Report, that will include detailed information on Los Filos and the potential underground mine at El Bermejal, is being prepared by Stantec Consulting International LLC
The Reserves-Only LOM plan has an 8 year mine life producing a total of 1.256 Moz gold at an average AISC of $803/oz. The Bermejal U/G PEA has the potential to add 1.392 Moz of gold production over an 8 year mine life at an average AISC of $439/oz. The Bermejal U/G PEA has an upfront capital cost estimate of $47 million, primarily for the access ramp and equipment purchases, based on cost estimates by Stantec Consulting International LLC (“Stantec”). At gold prices ranging from $1,200/oz to $1,300/oz, the after-tax IRR is 93.8% to 107.2%, as the project benefits from using existing infrastructure, process facilities and therefore has fixed cost-sharing opportunities by operating concurrently with the existing Los Filos operations
The reality is those PEAs are always what if? But $810 AISC for the Pit and $440 AISC on just the additional underground 1.5M OzAu M&A, taking into consideration the mill is done paid for, and that they just have to ramp and develop the underground sounds doable. Gold at $1250, low energy and the FX advantage making a lot of companies happy these days.
One step at a time. Good one to watch.
