{"id":1168308,"date":"2020-02-27T13:09:01","date_gmt":"2020-02-27T19:09:01","guid":{"rendered":"https:\/\/www.mining.com\/?p=1015393"},"modified":"2020-02-27T13:09:01","modified_gmt":"2020-02-27T19:09:01","slug":"atac-shares-drop-on-updated-tiger-pea","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1168308","title":{"rendered":"Atac shares drop on updated Tiger PEA"},"content":{"rendered":"<p>Atac Resources stock dropped by as much as 10% on Thursday morning after the Vancouver-based junior unveiled a new preliminary economic assessment (PEA) for its Tiger deposit in the Yukon.<\/p>\n<div class='d-flex justify-content-center d-xs-block d-sm-block d-md-none'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>Investors pushed the stock down in double the usual trading volume affording Atac a market value of $27 million on the TSX Venture\u00a0Exchange.  Gold was trading higher on Thursday at  $1,644 per ounce.<\/p>\n<p>The PEA envisions a smaller, higher grade operation with better economics compared to a previous assessment completed in 2016.<\/p>\n<p>The new PEA outlines an open pit operation with a life of seven years (including one year of construction) and average annual production of 45,000 ounces of gold. <\/p>\n<p>Total production would be 267,000 ounces at an average diluted grade of 3.82 g\/t, with production peaking at 72,860 ounces in the first year of operations. <\/p>\n<p>Capital costs are pegged at $82.3 million with a payback period of 1.4 years.<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p> The project\u2019s after-tax net present value is $63.9 million (at a 5% discount rate) and its internal rate of return, 42.6%.  <\/p>\n<\/blockquote>\n<\/figure>\n<p>The project\u2019s after-tax net present value is $63.9 million (at a 5% discount rate) and its internal rate of return, 42.6%. The updated study used a gold price of $1,400 per ounce and an exchange rate of $0.77. All-in sustaining costs are projected at $661 per ounce of gold.<\/p>\n<p>Tiger is located at the western end of its 1,700-sq.-km Rackla project, 55 km northeast of Keno City, in east-central Yukon, and the most advanced of several gold deposits on the property.<\/p>\n<p>\u201cThe updated geological model and PEA envision a smaller but higher grade operation than contemplated by the 2016 resource and PEA,\u201d said Graham Downs, president and CEO of Atac. <\/p>\n<p>&#8220;The updated deposit model has also identified strong high-grade trends which are open along strike and at depth. Tiger\u2019s high grades and margins, coupled with nearby satellite targets, provide a compelling case for advancement.\u201d<\/p>\n<p>The project would be a conventional truck-and-shovel open pit operation with a 1,500 t\/d carbon-in-pulp gold processing plant. Year-round operations would be supported by a 68-km tote road connecting the project to the Yukon highway system near Keno.<\/p>\n<p>Atac has also updated resources at the project. Tiger contains a mixture of oxide and sulphide ore in both open pit and underground categories, although only open pit resources are considered in the PEA. <\/p>\n<p>Total measured and indicated resources (combining both types of ore and mining methods) are 4.5 million tonnes averaging 3.19 g\/t gold for 464,000 ounces. <\/p>\n<p>Open pit indicated oxide resources contribute the most ounces at 238,000 ounces of gold contained in 2 million tonnes grading 3.74 g\/t and a cutoff grade of 0.75 g\/t gold.<\/p>\n<p><em>(A version of this article first appeared in the&nbsp;<\/em><a href=\"http:\/\/www.canadianminingjournal.com\/\"  rel=\"noreferrer noopener\"><em>Canadian Mining Journal<\/em><\/a><em>)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>PEA for Yukon project envisions a smaller, higher grade operation with better economics.<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[949,369],"tags":[43],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1168308"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1168308"}],"version-history":[{"count":3,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1168308\/revisions"}],"predecessor-version":[{"id":1168352,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1168308\/revisions\/1168352"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1168308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1168308"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1168308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}