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South Railroad Project

In February 2020, Gold Standard announced an updated Pre-Feasibility Study (“PFS”) for the South Railroad Project consisting of the Dark Star deposit and the Pinion deposit, which showed positive results. Key highlights of the Base Case of the PFS include (all currencies are shown in U.S. dollars):

  • After-tax net present value at a 5% discount rate (“NPV (5%)”) of $265M at a gold price of $1,400 per ounce and a silver price of $17.11 per ounce (“Base Case Metal Assumptions”)
    • NPV (5%) increases to $387M at a gold price of $1,600 per ounce and a silver price of $19.56 per ounce
  • After-tax IRR of 40.0% at Base Case Metal Assumptions
  • 8-year mine life with average annual gold production of 146,000 ounces per year over the first 5 years
  • Average life of mine cash costs of $582 per ounce after by-product credits, and all-in sustaining costs (“AISC”) of $707 per ounce
  • Mineral reserve pit designs based on a gold price of $1,250 per ounce and a silver price of $15.30 per ounce
  • Proven and probable mineral reserves of 1.25 million ounces of gold and 2.71 million ounces of silver
  • Life of mine strip ratio of 3.07:1
  • Initial capital expenditures of $133M

Details of the updated PFS can be found here: https://goldstandardv.com/site/assets/files/4408/m3_gsv_revised_pfs_23_03_2020.pdf