Sonoro Gold Corp. (SMOFF)

[lawrenzo]

SONORO ANNOUNCES POSITIVE UPDATED PEA RESULTS INCREASING PRE-TAX NPV TO USD $84.4 MILLION AND PRE-TAX IRR TO 74.9%

10:14 AM ET, 05/09/2022 - GlobeNewswire

VANCOUVER, Canada, May 09, 2022 (GLOBE NEWSWIRE) -- Sonoro Gold Corp.(TSXV: SGO | OTCQB: SMOFF | FRA: 23SP) (“Sonoro” or the “Company”) is pleased to announce the positive results of an updated independent Preliminary Economic Assessment (“PEA”) on the Company’s Cerro Caliche gold project located in Sonora State, Mexico. The updated PEA highlights several opportunities to potentially increase the project’s previously reported economic parameters, as well as potentially lower several identified risks. As the engineering and costing outlined in both the initial and updated studies are at the PEA level, potential variations in operation and capital costs may occur.

Based on the same mineral resource estimate contained in the Company’s initial PEA, dated October 29, 2021, the updated PEA contemplates an optimized mine plan for an open pit, heap leach mining operation with an initial two-year production rate of 8,000 metric tonnes per day (“mtpd”) and an increase to 15,000 mtpd for the remaining life of mine (“LOM”).

The updated PEA has been prepared in accordance with the requirements of National Instrument 43-101 (“NI 43-101”) by D.E.N.M. Engineering Ltd. of Burlington, Ontario (“D.E.N.M.”), with confirmation of the applicable resource estimates completed by Micon International Limited of Toronto, Ontario (“Micon”).

Updated PEA Highlights:

Pre-Tax net present value discounted at 5% (“NPV5”) of USD $84.4 millionPre-Tax Internal Rate of Return (“IRR”) of 74.9%After-Tax NPV5 of USD $53.5 million with an IRR of 45.6%Gold recovery of 74% and silver recovery of 27%7-year LOM with 344,500 ounces (“oz”) of gold equivalent (“AuEq”)LOM annual average production of 45,000 oz AuEq (Years 1-7)Years 1 to 3 annual production of 46,000 oz AuEq at 0.58 g/t AuEqInitial CAPEX costs of USD $26 million, including USD $3 million in contingencySustaining capital costs of USD $7.4 millionCash(1) costs of USD $1,206/oz AuEqAISC(2) of USD $1,333/oz AuEqPayback period of 2.2 years