Initial Estimates from La India Internal Studies
La India internal study shows 12.4-year mine life with 1.8m oz production and $882m NPV at updated parameters.
- Life of Mine 12.4 years (prior 8.4 years)
- Annual Gold Production 145,000 oz (prior 71,600 oz)
- Total Production LoM 1,800,000 oz (prior 548,000 oz)
- NPV (6%) US$882m (prior US$338m)
- Initial Capex US$122m (prior US$116m)
- Grade (Au) 3.53 g/t (prior 2.56 g/t)
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Metals Exploration plc (AIM: MTL) ("Metals Exploration" or the "Company") a gold production, exploration, and development company with assets in the Philippines and Nicaragua, is pleased to announce the initial estimates from internal studies conducted on the La India gold project in Nicaragua ("La India").
In November 2024, the Metals Exploration team visited the site, and conducted a number of studies to assess the potential operational and financial performance of La India. The Company's initial estimates show significant improvements from the Bankable Feasibility Study ("BFS") conducted in 2022 by SRK Consulting.
The initial estimates can be found in the table below, with the BFS 2022 for comparison.
| Parameter | Units | BFS 2022 (updated gold price) | Internal Study 2025 |
|---|---|---|---|
| LoM | Years | 8.4 | 12.4 |
| Mining Method | N/A | Open Pit | Open pit / Underground |
| Annual Production (Au) | Oz | 71,600 | 145,000 |
| Yearly Ore Production | Ktpa | 890 | 1,400 |
| Grade (Au) | g/t | 2.56 | 3.53 |
| Production LoM | Oz | 548,000 | 1,800,000 |
| Commodity Price (Au) | US$/oz | 2,500 | 2,500 |
| Initial Capex | US$mm | 116 | 122 |
| All in Sustaining Cost | US$/oz | 1,058 | 1,176 |
| NPV (6%) | US$mm | 338 | 882 |
| IRR | % | 71 | 54 |
Bringing La India into Production
- Metals Exploration is targeting the commencement of production at La India by the end of 2026
- The Company is in final negotiations to purchase a second-hand plant to match the potential upside performance of 1,400 kilotonnes per annum (Ktpa) of ore
- It is anticipated that an engineering firm will be appointed in February 2025 to commence construction drawings
- Exploration drilling and definition drilling is expected to commence in April 2025
- Civil works are expected to begin in May 2025
Darren Bowden, CEO of Metals Exploration, commented:
"We are delighted to have completed the acquisition of Condor Gold plc and are now able to share the initial estimates from internal studies on La India following a site visit by the Metals Exploration team in November 2024. We are well advanced with efforts to commence construction production, and have an established in-country team of Spanish speakers who I have previously worked with. Our aim is to bring La India into production before the end of 2026, in order to replace cashflow from Runruno as it approaches the end of life of mine."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.