Compared to an earlier economic analysis, a feasibility study for Idaho-focused Freeman Gold’s (TSXV: FMAN) Lemhi project establishes 1 million ounces of gold reserves, improves mine life, and triples the project’s value. Digest of Mining News
According to Freeman’s analysis on Monday, Lemhi’s post-tax net present value (discounted at 5%) is $696 million, a 227% increase over the preliminary economic assessment (PEA) from 2023. The 130% increase in the price of gold since 2023 has contributed to this surge. Additionally, the feasibility increases the mine life by four years to fifteen years and the internal rate of return by twelve percentage points to thirty-four percent. However, the open pit project’s initial expenses increase by 73% to $329.7 million. Boise, the state capital, is roughly 300 kilometers northeast of Lemhi.
According to a statement from Freeman CEO Bassam Moubarak, “the completion of the Lemhi feasibility study represents a major milestone in the advancement of the Lemhi gold project and confirms what we believe is one of the most compelling undeveloped gold projects in the United States.”
“The project’s capital efficiency and strong economic foundation are highlighted by the fact that it generates more than two dollars of post-tax net present value… for every dollar of initial capital invested.”
Higher ranking Lemhi’s viability now places it in a select group of advanced gold development projects in Idaho, which are more well-known for their silver mines than gold. These projects include Perpetua Resources’ (TSX, Nasdaq: PPTA) Stibnite, Liberty Gold’s (TSX: LGD) Black Pine, and Integra Resources’ (TSX-V: ITR; NYSE-A: ITRG) DeLamar.
The company now has a market worth of C$93 million after Freeman shares surged nearly 20% to C$0.34 per share, their greatest level in a single month.
972,000 ounces of production Over the course of its existence, Lemhi may produce 972,000 ounces at a base case gold price of $3,650 per ounce and all-in sustaining costs of $1,718.95 per ounce. Trading silver futures
According to Moubarak, the mine design improved the mill’s capacity for crushing and grinding, and the feasibility increased output by almost 120,000 oz. in comparison to the 2023 PEA.
The infill drilling that was finished at Lemhi last year is the basis for that increased output forecast. According to Freeman, 92,696 meters of drilling have been finished at the project.
The business intends to apply for admission to the federal FAST-41 permitting fast track, which was accomplished for its Black Pine project by fellow Idaho developer Liberty Gold.
