The Cape Ray Gold Property is located approximately 25 km north east of the town of Channel-Port aux Basques on the island of Newfoundland. The property is host to the 04, 41, 51 and Windowglass Hill (WGH) gold-silver deposits, first discovered in 1978 and acquired by Benton Resources in 2013. In 2015, Benton Resources entered in to a joint venture agreement with Nordmin Engineering, pursuant to which Nordmin will earn a 50% interest in the Cape Ray Project through a series of expenditures and services to be provided. Nordmin Engineering is currently the operator of the project.
The Cape Ray Gold Deposits (CRGD) consist of three main mineralised zones: the 04, 41 and 51 zones comprised of quartz veins and vein arrays hosted within graphitic schists along a 1.8 km segment of the Cape Fay Fault (CRF), a regional fault that transects the island and is host to numerous gold occurrences, including Marathon Gold’s Valentine Lake gold project with current resources of 13,963,000T at 2.05 g/t Au indicated and 1,768,000T at 1.96 g/t Au inferred. The WGH deposit occurs predominantly in a set of flat-lying sulphide-rich quartz veins hosted in the relatively un-deformed Windowglass Hill Granite located proximal to the CRFZ and approximately 3km southwest of the 04-41-51 deposits.
Cape Ray Mineral Resources - February 1, 2017
In February 2017, Nordmin updated a positive Preliminary Economic Assessment (PEA) for the deposits. Highlights from the PEA, with the base-case gold price of $1,306 USD per ounce and an exchange rate of $1.26 CAD/USD, are as follows:
- Total production of 291,000 oz gold and 553,000 ounces of silver with gross value of >$492 million USD.
- Pre-production and Sustaining Capital is $85.4 million. Pre-production is for a 2 year period.
- Pre-tax NPV(7%) of $82.2 million and internal rate of return of 40%.
- Post-tax NPV(7%) of $56.9. million and internal rate of return of 34%.
- Pre-tax Net Revenue of $146.8M over 9 year LOM.
- Post-tax Net Revenue of $104.3M over 9 year LOM.
- Positive Cash-flow is realized in year 2.
- 2.8M tonnes of mill feed averaging a combined 3.3 g/t Au and 9.7 g/t Ag
- Mill operates at average tonnage of 1000 tonnes per day.
- Gold recovery of 98% and Silver recovery 63%.
All deposits are open on strike and at depth. The complete PEA can be viewed here.
Cape Ray Fault
Cape Ray - Highlights
& Regional Geology
Cape Ray - Highlights &
Detailed Airborne Magnetics
Cape Ray Deposits