Atac Resources Ltd. [ATC-TSXV] on Thursday released an updated mineral resource estimate and preliminary economic assessment (PEA) for a gold deposit located at the western end of its Rackla property in Canada’s east-central Yukon.
According to the 2020 PEA, pre-production capital of $110.1 million would be needed to develop the Tiger Deposit which is expected to produce 267,000 ounces of gold at an average diluted grade of 3.28 g/t over a projected lifespan of seven years. The all-in-sustaining cost is forecast at US$661 an ounce.
Other PEA highlights include annual peak production of 72,860 ounces of gold, and life of mine capital costs of $119.4 million.
According to the updated mineral resource estimate, the Tiger Deposit contains a measured and indicated resource of 4.52 million tonnes grading 3.19 g/t gold or 464,000 ounces. That includes an indicated oxide resource (open pit) of 1.98 million tonnes, grading 3.74 g/t or 238,000 ounces.
“The updated geological model and PEA envision a smaller but higher-grade operation than contemplated by the 2016 resource and PEA,’’ said Atac President and CEO Graham Downs. “The updated deposit model has also identified strong high-grade trends which are open along strike and at depth,’’ he said. “Tiger’s high grades and margins, coupled with nearby satellite targets provide a compelling case for advancement.’’
The company also said year-round operations would be supported via a 68-kilometre tote road, which would connect the project to the Yukon highway system, near Keno City.
Atac shares eased 8% or $0.015 to 17.5 cents on Thursday and trade in a 52-week range of 18 cents and 32 cents.
Atac is focused on developing Canada’s only Carlin-style gold district and intrusion-related polymetallic targets at the 1,700 square kilometre Rackla property.
It has been widely reported that companies like Barrick Gold Corp. (ABX-TSX, ABX-NYSE) and Newmont Goldcorp Corp., [NGT-TSX, NEM-NYSE] have been attracted by the geological similarities between parts of the Yukon, and the fabled Carlin gold trend in Nevada.
It is why Barrick acquired a 19.9% stake in Atac and formed a strategic partnership with the junior on a section of its Rackla gold property known as the Orion project. However, Barrick elected late last year to drop the earn-in option that was potentially worth $55 million.
The Rackla Gold Property is comprised of three separate projects known as Osiris, Orion and Rau. The Rau project hosts the advanced-stage Tiger Deposit and is situated in a polymetallic district with over 15 other underexplored targets.
An inferred resource of 1.68 million ounces (grading 4.23 g/t gold) has already been outlined on the Osiris Project. The Osiris inferred resource includes a pit constrained mineral resource containing just over 1 million ounces of gold at 4.08 g/t.
Osiris was discovered in 2010 through follow-up stream sediment sampling of highly anomalous arsenic values from the Yukon Government database. The discovery holes intersected 65.20 m of 4.65 g/t gold. Four zones make up the 12 square kilometre Osiris cluster. They include Conrad, Osiris, Sunrise, and Ibis. Of the four, Conrad is the most advanced.
In 2019 the company has switched its attention to the Rau Project. The company said exploration at Rau last year was focused on the eastern side of the 660 square kilometre project, and is designed to follow up on gold, copper silver and tin anomalies identified in 2018. Work completed to date includes prospecting, soil sampling, geologic mapping, rotary air blast (RAB) drilling and ground based induced-polarization and magnetometer geophysical surveying, the company said.