Golden Queen Mining Co. Ltd. announced that it has initiated a drill program on its Soledad Mountain property, california, USA. The drill program will test targets within the areas of the planned North-West and East open pits. A total of 15 holes are proposed within the North-West open pit area with a total length of 1,500 m and a total of 9 holes are proposed within the East open pit area with a total length of 1,200 m.
Completed a feasibility study and Technical Report. The following are the parameters used in the base case cash flow projection: • Gold and silver prices of $600.00/oz and $12.00/oz respectively • An analysis on an all-equity basis with lease financing of the primary mining equipment and • A 10 % contingency on capital and operating costs. The Project has a projected internal rate of return (IRR) on capital employed of 19% before taxes with a payback of approximately 4 years. The net present value (NPV) is $66.5million with discount rate of 5.0% and the undiscounted, cumulative net cash flow is $120million. The contribution of gold and silver to gross revenues is projected to be 84% and 16% respectively with an average cash operating cost per ounce of gold produced, net of silver credits, of $420/oz.
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