Focused on Russia Trans-Siberian Gold on Friday announced the results of an independent scoping study for its 100% -owned Rodnikova project in Kamchatka, Russia’s Far East, citing a potential mine life of 14 years.

The AIM-traded company said the mine life was based on a JORC-compliant mineral resource estimate of 6.3 million tonnes, at an average grade of five grams of gold per tonne.

Life-of-mine gold production was estimated at 517,000 ounces at an average grade of 4.03 grams per tonne, and life-of-mine silver production would be 3.0. 06 million ounces at an average grade of 28.9 grams per tonne.

The sub-leveling and underground mining methods were deemed “optimal” for the project, along with a conventional carbon-in-leach treatment plant with a treatment capacity of 500,000 tonnes per year.

Gold recovery was reported to be 94% at a cut-off grade of 3.5 grams per tonne, calculated using a price assumption of $ 1,250 per ounce.

The board said the production schedule does not include any potential exploration success or mineral resource growth.

Regarding the costs and economics of the project, Trans-Siberian said life-of-mine revenue is valued at $ 715 million, with free cash flow over the life of the mine. mine of $ 126 million and capital expenditures of $ 133 million, of which $ 82 million. initial construction expenses in the first year.

The economics at a mine life-of-mine gold price of $ 1,600 per ounce, including the application of the warrant, was an after-tax net present value with a 10% discount of 177.6 million dollars and an after-tax internal rate of return of 59.2%. .

At a gold price of $ 1,300 per ounce, the life-of-mine savings, including the application of the warrant, was an after-tax net present value with a 10% discount of 92 , $ 4 million and an after-tax internal rate of return of 35.3%.

The company reported an updated payback of four years when applying TOR, or a maximum of six years excluding TOR.

“The Rodnikova project scoping study provided a viable project economy based on conservative and conservative assumptions,” CEO Alexander Dorogov said.

“As with all scoping studies, there is still a lot of work to be done before a final investment decision can be made.”

Dorogov said the Trans-Siberian Railway was “determined” to move forward with the exploration and development needed to move towards a pre-feasibility study.

“At this point, we are satisfied with the positive economic indications and the upside potential to improve the project which, if advanced, would bring significant socio-economic benefits to the people of Kamchatka.”

As of 8:36 a.m. GMT, shares of Trans-Siberian Gold were down 0.26% to 94.75 pence.