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Los Filos Expansion Feasibility Study

  • Overview
  • Technical Report
  • Corebox Model

Overview

In March 2019 Leagold announced completion of a Feasibility Study prepared by independent consultants for the expansion of the Los Filos mine in Mexico. The Feasibility Study incorporates the potential for development of the Bermejal underground mine, enlarging the Los Filos open pit mine, re-phasing of the Bermejal open pit into two distinct sections (Bermejal and Guadalupe), and the construction of a carbon-in-leach (CIL) processing facility to complement the existing heap leach facilities.

Highlights include:

  • Gold production of 3.2 million ounces (Moz) over a 10-year mine life (2019 to 2028) at an average AISC1 of $740/oz
  • Post expansion (2021 onwards):
    • Average annual production of 350,000 oz at AISC1 of $694/oz
    • Average annual production exceeding 420,000 oz from 2021 to 2024
  • Proven and Probable mineral reserves of 104.2 Mt at 1.31 g/t containing 4.5 Moz2
  • Capital cost of $180 million to develop the Bermejal underground and construct a new 4,000 tonne per day (tpd) CIL plant with related infrastructure
  • Current operations to fund capitalized stripping during the initial expansion phase (2019 to 2020) at the Guadalupe and Los Filos open pits
  • At $1,250/oz gold price:
    • NPV0% of $884 million
    • NPV5% of $679 million
    • IRR of 86%

For details refer to the March 12, 2019 news release available here.

A technical report prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101) is available on www.sedar.com .

(1) AISC is a non-GAAP measure.

(1) Proven reserve of 36.9 million tonnes at 0.76 grams per tonne containing 0.906 Moz gold plus Probable reserve of 74.5 million tonnes at 1.44 grams per tonne containing 3.457 Moz gold (effective date of October 31, 2018, SRK Consulting (Canada) Inc.).

Exploration Potential

The Bermejal Underground deposit remains open on strike and to depth. Exploration activities are concentrated on infill drilling of the Bermejal Underground deposit to convert the current Inferred Resource to an Indicated Resource and to further determine the extent of the deposit. In addition, geotechnical drilling will assist with the optimization of the mining methodology in forthcoming engineering designs.

Qualified Persons

Gilles Arseneau, Ph.D., P. Geo., Associate Consultant with SRK, is an independent Qualified Person as defined by NI 43-101, and has reviewed and approved the updated mineral resource estimate as reported here.