LONG VALLEY GOLD PROJECT
Preliminary Economic Assessment
KORE is pleased to announce a positive Preliminary Economic Assessment (“PEA”) for the Company’s 100% owned Long Valley Gold Deposit (“Long Valley” or “Project”), located in California, USA. The PEA demonstrates Long Valley’s potential to produce gold at low capital and operating costs. Long Valley has clear upside potential from targets on-strike and lateral to the current modelled oxide mineralization and intends to aggressively explore this untapped potential.
PEA HIGHLIGHTS
| Economics | Pre-Tax | Post-Tax | |
| Net present value (NPV 5%) | US$ millions | 347 | 273 |
| Net present value (NPV 5%) at C$0.75/US$1.00 | C$ millions | 463 | 364 |
| Internal rate of return (IRR) | % | 57% | 48% |
| Payback (undiscounted) | years | 1.6 | 1.8 |
| LOM average annual cash flow * | US$ millions | 96 | 83 |
| LOM cumulative cash flow * | US$ millions | 475 | 385 |
| Cumulative cash flow (undiscounted) | US$ millions | 433 | 343 |
| Gold price assumption | US$ per ounce | 1600.00 | |
| Mine life | years | 7 | |
| Average annual mining rate | million stpa | 18.5 | |
| Average annual gold production | oz/yr | 102,000 | |
| Total LOM recovered gold | thousand ounces | 717 | |
| Recovery (LOM) | % | 68% | |
| Initial capital costs | US$ millions | 161 | |
Unless otherwise stated, all dollar figures are in United States dollars (“$”) and masses are in short tons. Life-of-mine (“LOM”) calculation and “Mine Life” is defined as the duration of mining operations, 7 years. There are additional years of site work for residual leaching, washing, back-filling and reclamation modelled.
PEA HIGHLIGHTS
Gold Price Sensitivities
The following table demonstrates the post-tax sensitivities of NPV and IRR to gold price per ounce to the PEA. The base case, highlighted in the table below, assumes US$1,600 per ounce of gold:
| Economic Sensitivities to Gold Price (post tax) | ||
| Per ounce gold price (US$) | NPV (5%), US$ millions | IRR% |
| $1,200 | 97 | 25% |
| $1,400 | 187 | 38% |
| $1,600, base case | 273 | 48% |
| $1,800 | 352 | 58% |
| $2,000 | 438 | 67% |
| $2,200 | 524 | 76% |
With regards to technical matters for the Long Valley 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 Long Valley PEA, is consistent with that provided by the Qualified Persons responsible for the PEA.
MESSAGE FROM THE CEO OF KORE
LONG VALLEY PEA HIGHLIGHTS VIDEO
