Revival Gold releases Idaho PFS, resource update

Revival Gold Inc. [RVG-TSXV, RVLGF-OTCQX] on Monday announced an updated mineral resource estimate and preliminary feasibility study (PEA) for its Beartrack-Arnett gold project in Idaho.

“Completion of this PFS marks a significant de-risking milestone for Revival Gold,’’ said Hugh Argo, the company’s President and CEO. “Beartrack-Arnett presents a unique opportunity for meaningful U.S. gold production from a low-risk, low-capital restart of an established domestic mine site,’’ he said.

“Beyond the first phase of open-pit heap leach production addressed in the PFS, potential exists for Revival Gold to pursue a second phase of underground and open-pit mill operations,’’ he said.

The PFS envisages average gold production of 65,300 ounces annually, for a total of 529,100 ounces over a life-span of eight years. Pre-production capital is estimated at $109 million, working capital of $5.0 million and life-of-mine (LOM), sustaining capital of $100 million.

Revival Gold shares eased 2.1% or $0.01 to 46 cents in light trading volume. The shares are currently trading in a 52-week range of 87 cents and 38 cents.

The PFS pegs the cash cost at US$986 an ounce and all-in-sustaining cost (AISC) at US$1,235 an ounce.

Updated estimates are based on an inaugural proven and probable open-pit mineral reserve of 36.2 million tonnes at 0.74 g/t for 859,000 ounces.

Beartrack-Arnett is the largest past-producing gold mine in Idaho. The Beartrack Mine was operated by Meridian Beartrack from 1994 to 2000 and produced approximately 600,000 ounces of gold. The mine operated at 13,600 tonnes per day and achieved life of mine recovery of 88% based on the cyanide-soluble grade from the ore processed during heap leach operations. The mine was closed at a time when the price of gold dropped below US$300 an ounce.

On Tuesday, Revival released an updated mineral resource that is based on 172,244 metres of drilling through the end of 2022. According to the new estimate, measured and indicated resources stand at 86.2 million tonnes of grade 0.87 g/t gold, containing 2.42 million ounces. That marks a 14% increase over an earlier estimate released in 2022.

On top of that is an inferred resource of 50.7 million tonnes of 1.34 g/t gold, containing 2.19 million ounces. That’s up 13% from the earlier estimate.

The PFS has developed as an initial phase of open pit mining with approximately 36.2 million tonnes of heap leachable ore from the Beartrack and Haidee deposits at an average rate of 12,000 tonnes per day for a period of 8.1 years.

During the first five years of mine operations, ore would be mined from the Beartrack pits (North, South, and Mason-Dixon pits), then crushed, conveyor stacked , and leached on a dedicated leach pad at the Beartrack site.

During the last three years of mine operations, mining would transition to the Haidee pit in the Arnett area. Prior to mining at Haidee, a two-way haul road between Haidee and Beartrack sites would be constructed and a dedicated leach pad for the Haidee ore would also be constructed, adjacent to the Beartrack leach pad site.

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