StockMarketWire.com - SolGold said a new assessment indicated that the Alpala copper, gold and silver deposit at the Cascabel project in northern Ecuador could cost between $2.4bn and $2.8bn to develop.

The estimate was included in a new preliminary economic assessment for the project.

It also gave the asset a net present value of $4.1bn to $4.5bn, based on a number of currency and metal price assumptions.

Internal rate of return estimates ranged from 24.8% to 26.5%.

Total capex, including life of mine sustaining capex, was estimated at $10.1bn to $10.5bn, depending on production rate scenario.

The payback period on initial start-up capital ranged from 3.5 to 3.8 years after commencement of production, also depending on production rate scenario.

'The SolGold board is excited by the opportunity demonstrated for the Alpala project, and that it continues to grow,' chief executive Nick Mather said.

'The unusually low operating costs modelled are due to the relatively soft, fractured nature of the ore, resulting in enhanced caveability, a high degree of fragmentation in the cave and ease of crushing and millability, combined with low hydroelectric costs.'

'The overall scale efficiencies also assist in the delivery of modelled low operating costs.'

At 8:00am: [LON:SOLG] SolGold PLC share price was -0.77p at 37.58p



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