Snowline Gold Corp. Releases Positive Economic Assessment for Valley Gold Deposit in Yukon
- Snowline Gold Corp. announces a Preliminary Economic Assessment for the Valley gold deposit with a 20-year mine life.
- The assessment forecasts 6.8 million ounces of payable gold, with initial production averaging 544,000 ounces annually.
- Snowline prioritizes environmental stewardship and community engagement while advancing the Rogue Project's economic potential.
Snowline Gold Corp. Unveils Promising Economic Assessment for Valley Gold Deposit
Snowline Gold Corp. announces the results of its Preliminary Economic Assessment (PEA) for the Valley gold deposit, a pivotal element of its 100%-owned Rogue Project in Yukon, Canada. This assessment marks a significant milestone for the company, being the first economic evaluation of the Rogue Project. The PEA outlines a potential life of mine (LOM) extending over 20 years, projecting a remarkable yield of 6.8 million ounces of payable gold. The initial five years of the operation could see annual production averaging 544,000 ounces, tapering to an average of 341,000 ounces throughout the project's lifespan. This robust production forecast underscores the substantial potential of the Valley deposit in contributing to the gold mining landscape in Yukon.
The project proposes a conventional open-pit mining and milling operation, designed with an impressive processing capacity of 25,000 tonnes per day. Key economic parameters are anchored on a gold price of US$1,950 per ounce, which presents a favorable outlook for profitability. The PEA estimates total pre-production capital costs at C$1.685 billion, which includes a contingency of C$246 million. Snowline’s CEO, Scott Berdahl, highlights the project’s high margins and large scale, indicating significant economic benefits not only for the company but also for the Yukon region as a whole. The prospective development promises to create jobs and enhance local infrastructure, showcasing the project’s broader economic impact.
Infrastructure planning for the Rogue Project includes essential developments such as year-round road access, a bridge over the Pelly River, and a construction camp capable of accommodating 750 personnel, which will transition to a 250-person operational camp during the mining phase. Environmental stewardship is a priority, with the Tailings Storage Facility (TSF) designed to meet stringent environmental criteria. A comprehensive water management system is set to address potential issues related to metal leaching and acid rock drainage, reflecting Snowline’s commitment to sustainable mining practices. This assessment not only reinforces Snowline’s position within the mining sector but also signals a proactive approach to balancing economic benefit with environmental responsibility.
In addition to the economic assessment, Snowline Gold Corp. continues to emphasize its rapid progression from initial soil sampling to developing a substantial economic model. The company’s advancements highlight a commitment to leveraging Yukon's rich mineral resources while fostering community engagement and environmental stewardship. As Snowline moves forward, the focus remains on ensuring that the Valley gold deposit can deliver both economic value and responsible mining practices.