Sonoro Gold completes PEA on Cerro Caliche in Mexico


The early stage study forecast cash costs of $1,227 per gold-equivalent oz. and all-in sustaining costs of $1,351 per gold-equivalent ounce.

Using base case prices of $1,750 per oz. gold and $22 per oz. silver, Cerro Caliche would deliver an after-tax net present value at a 5% discount rate of $41.5 million and a post-tax internal rate of return of 532.4%.

Initial capex of $32.2 million, including a contingency of $3.8 million, could be paid back in 2.2 years.

The PEA estimated recoveries from a three-stage crushing circuit of 74% for gold and 27% for silver.

The project has measured and indicated resources of 26.70 million tonnes grading 0.41 gram gold per tonne and 3.43 grams silver per tonne (0.42 gram per tonne gold-equivalent for 364,000 gold-equivalent ounces. Inferred resources stand at 5.46 million tonnes averaging 0.40 gram gold per tonne and 7.34 grams silver per tonne (0.44 gram gold-equivalent per tonne) for 77,000 gold-equivalent ounces.

Sonoro has an option to acquire 100% of the project, about 45 km from the town of Magdalena de Kino.

The junior says the 1,400-hectare property is near Equinox Gold’s (TSX: EQX; NYSE-AM: EQX) Mercedes mine and Agnico Eagle Mines’ (TSX: AEM; NYSE: AME) Santa Gertrudis project.

Over the last year, the junior explorer has traded in a range of C16¢ and C39¢. Sonoro has a market cap of C$21.5 million ($16.9m).

(This article first appeared in The Northern Miner)

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