8-K: Augusta Gold Corp. Unveils Positive Feasibility Study for Reward Gold Project

Augusta Gold Corp. released a feasibility study for its Reward Gold Project in Nevada, outlining a technically and economically viable path forward.

Summary

• Augusta Gold Corp. has released a feasibility study for its Reward Gold Project in Nye County, Nevada.
• The study, effective September 3, 2024, was prepared by a team of qualified experts.
• The project considers open pit mining of approximately 15.1 million tons of ore with an estimated grade of 0.025 ounces per ton gold.
• Ore will be crushed, conveyor stacked onto a heap leach pad, and leached using dilute sodium cyanide solution.
• The average processing throughput is estimated at 5,479 tons of ore per day.
• The project will be developed in two stages, with leach pad expansion in year three.
• The study includes a mine production schedule and costing for all process components and infrastructure.
• The economic evaluation was conducted with a gold price of US$1,975 per ounce.

Sentiment

Score: 8

Explanation: The document presents a positive feasibility study with strong economic indicators, suggesting a high likelihood of project advancement. However, there are some risks and uncertainties that temper the overall sentiment.

Positives

• The Reward project is located in a favorable geological setting within the Walker Land Trend.
• Metallurgical testwork indicates a projected field gold recovery of 79% for the Good Hope Deposit.
• The project has existing permits and authorizations, which will require minor modifications.
• The project has water rights for Reward and an option for additional water rights.
• The project has a positive cash flow and is reasonable with respect to statement of reserves.

Negatives

• The Gold Ace Zone has significantly lower column recoveries compared to the Good Hope Deposit.
• The project may have a short fall of water for the project.
• Experienced labor may be difficult to hire for the project.
• The price of gold used in the Cash Flow is $1,975 per oz, approximately $500 per oz lower than the spot gold price as of the effective Report date.

Risks

• The primary risk factor for the Mineral Reserves will be the ability to mine the steeper portions of the Phase 2 pit design.
• There is a risk that the regulatory deadlines may be extended by the agencies due to workload or other circumstances.
• There may be higher maintenance and operating costs than anticipated to compensate for the inexperienced personnel.
• It is possible that the market gold price during operation will be lower than $1975 per oz, resulting in lower economic performance.

Future Outlook

The project is considered technically and economically viable and justifies progressing to basic and detailed engineering, procurement and construction.

Industry Context

The Reward Project is located in the Walker Lane district, a prolific gold-producing region, and the study results are consistent with other similar projects in the area.

Comparison to Industry Standards

• The study uses industry-standard heap leaching methods and a three-stage crushing circuit.
• The estimated field gold recovery of 79% for the Good Hope Deposit is within the range of similar heap leach operations.
• The reagent consumptions are low to moderate, which is typical for this type of deposit.
• The use of a 0.008 oz Au/ton cut-off grade for reserves is consistent with industry practice for open pit gold mines.
• The use of a 58 degree interramp slope angle is consistent with industry practice for open pit gold mines.

Stakeholder Impact

• Shareholders: The study indicates a positive return on investment.
• Employees: The project will create jobs in the local area.
• Customers: The project will produce gold for sale.
• Suppliers: The project will require goods and services from local and regional suppliers.
• Creditors: The project will require financing.

Next Steps

• Proceed to basic and detailed engineering.
• Initiate procurement and construction.
• Re-design the crusher and estimate costs to produce overliner for the heap leach pad.
• Consider reducing the size of the stacking conveyors.
• Consider leasing support mobile equipment instead of purchasing.
• Prepare a detailed compilation and graphical presentation of the proposed initial minor modifications and engage state and federal regulatory agencies early and often.
• Engage appropriate contractors to prepare permit application modifications.

Key Dates

Keywords

Feasibility Study, Reward Gold Project, Heap Leaching, Open Pit Mining, Mineral Reserves, Mineral Resources, Gold Production, Nye County, Nevada, Augusta Gold Corp