IMPERIAL GOLD PROJECT
Preliminary Economic Assessment
KORE is pleased to announce a positive Preliminary Economic Assessment (“PEA”) for the Company’s 100% owned Imperial Oxide Gold Deposit (“Imperial”), located in California, USA. The PEA demonstrates Imperial’s potential to be a mid-tier gold mine with positive project economics. In addition to the gold price, Imperial has upside potential from deposit extensions and exploration on the 100% owned Mesquite-Imperial-Picacho District which captures 28 kilometers of strike from the operating Mesquite mine to the historic Picacho heap leach mine.
PEA HIGHLIGHTS
(Expressed in Canadian dollars unless otherwise stated)
| Economics | Pre-Tax | Post-Tax | |
| Net present value (NPV5%) at 0.75C$/US$ | C$ millions | $584 | $458 |
| Net present value (NPV 5%) | US$ millions | $438 | $343 |
| Internal rate of return (IRR) | % | 52% | 44% |
| Payback (undiscounted) | years | 2.3 | 2.7 |
| LOM avg. annual cash flow after tax & capital | US$ millions | $105 | $90 |
| LOM cumulative cash flow (undiscounted) | US$ millions | $697 | $580 |
| Gold price assumption | per ounce | $1,450 | |
| Mine life | years | 8 | |
| Average annual mining rate | million tons/yr | 43.4 | |
| Average annual gold production | thousand ounces/yr | 146 | |
| Total LOM recovered gold | million ounces | 1.17 | |
| Initial capital costs | US$ millions | $143 | |
Life-of-mine (“LOM”) calculation and “Mine Life” is defined as the duration of mining operations, 8 years. There are additional years of site work for residual leaching, washing, back-filling and reclamation modelled.
KORE does not consider the historic production or economic realization of Picacho or Mesquite as indicative of mineralization at Imperial or the economics of any such mineralization.
The following table demonstrates the post-tax sensitivities of NPV and IRR to gold price per ounce. The base case, highlighted in the table below, assumes US$1,450 per ounce of gold:
| Economic Sensitivities to Gold Prices (post-tax) | ||
| Per ounce of gold | NPV (5%) millions | IRR% |
| $1,300 | US$234 | 34% |
| $1,450 | US$343 | 44% |
| $1,600 | US$450 | 52% |
| $1,800 | US$590 | 64% |
| $2,000 | US$729 | 75% |
For more information please see April 6, 2020 news release.
With regards to technical matters for the Imperial PEA, Marc Leduc, P.Eng. is the Qualified Person within the meaning of NI 43-101 and has reviewed and validated that the information in this webpage with respect to the Imperial PEA, is consistent with that provided by the Qualified Persons responsible for the PEA.
MESSAGE FROM THE CEO OF KORE
IMPERIAL PEA HIGHLIGHTS VIDEO
