09:18 AM EST, 01/23/2025 (MT Newswires) -- Getchell Gold ( GGLDF ) on Thursday said the independent Preliminary Economic Assessment (PEA) completed on its Fondaway Canyon gold project located in Nevada was positive.

The PEA, prepared by Forte Dynamics, contemplates an open pit operation using contract mining and processing 2.9 million tonnes per annum (mtpa) or 8,000 tonnes per day (tpd) with an initial planned mine life of about 10.5 years.

The mill feed will be trucked from two open pit deposits in the Central Area, which hosts about 85% of the mineral resources currently defined at Fondaway Canyon. The company said the mine will be developed in consecutive phases to manage the operating stripping ratio and to provide consistent mill feed.

A conceptual flotation plant was designed, with the facility processing oxide and sulfide mineralization. The recent scoping level metallurgical study evaluated several processing options following the test work on deportment of gold which indicated that much of the gold was refractory and associated with pyrite.

"There is significant potential to increase the mineral resource within the current minable shape, along strike, and dip, and to optimize the mining and processing of the gold." said Getchell Gold ( GGLDF ) President Mike Sieb.

The company expects initial capital expenditure of US$226.5 million (including 20% contingency) to construct the project. Due to the use of contract mining and the 10 years life of the plant, sustaining capital has not been considered in this study.

Operating costs for the life-of-mine are estimated at US$1.08 billion (US$875.0 /oz produced) and cash costs over that time are estimated at US$1.46 billion (US$ 1,188 /oz produced) which includes operating costs, refining charges, and royalties.

Shares of the company closed up $0.0050 or about 3%, to $0.185 on Wednesday on the Canadian Securities Exchange.