West Vault can mine Hill-of-Gold

He said Hill-of-Gold was “probably positive” for the Hasbrouck economy, but pointed out that the historic 43,000-ounce resource was not included in the 2016 Hasbrouck pre-feasibility study.

The study estimated a small initial investment of US $ 47 million for an eight-year mine producing about 71,000 ounces of gold per year, with an after-tax NPV5 of $ 295 million and an IRR of 92% using a gold price of $ 1,800 per ounce.

However, the company was in no rush to produce, said COO Sandy McVey. Mining log in August, the main owner of West Vault, Sun Valley Gold, preferring to wait for the price of gold to rise significantly.

McVey has since also become interim CEO of West Vault in September after Michael Jones stepped down as chairman and CEO.

West Vault said it plans to transport equipment from Hill-of-Gold to its fully licensed Three Hills deposit, which was the first phase of its Hasbrouck mining plan and ready for construction according to a September update.

He had acquired Hill-of-Gold in February in exchange for a one-time payment of $ 250,000.

The company said in November that its cash flow was “good for six years” after receiving $ 6 million in a gold and silver flow deal with Sprott Private Resource Streaming and Royalty Corp in February.

Sprott has the option of adding a Hill-of-Gold stream for $ 300,000.

Eric Sprott owns 5% of the shares of West Vault, behind Ruffer with 17% and Sun Valley Gold with 46%.

Shares of West Vault (TSXV: WVM) have fluctuated between C95c and $ 1.99 over the past year. They closed up 3% on Friday at $ 1.03 to capitalize it at $ 59.8 million ($ 46.6 million).

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