Moneta pivots at Tower
Tired of waiting to elicit takeover interest in its 12.8Moz Tower Gold project in Ontario, Canada Moneta Gold is pivoting to put together a smaller-scale development option, VP technical services Jason Dankowski told Mining Journal at the 2023 Gold Forum Americas in Colorado Springs in Colorado, USA.
The company's board decided in July to replace geologist Gary O'Connor as chief executive to bring in someone with mine-building experience to steer the company towards an investment decision and beyond, with an active executive search underway.
The new hire will drive forward a prefeasibility study (PFS) to focus on the open pit portion of the 2022 preliminary economic study, covering the first 11 years of mining with a smaller mill. The PFS is due in the second semester of 2024, with the company looking to file a project description to kick off the permitting process before the end of 2023.
"We are now looking at 5Mtpa rather than 7Mtpa, or 13,500tpd rather than 19,000tpd. This will push the grade up to 1.1-1.2gpt from 1gpt, and drop the production from 261,000ozpa to 200,000-220,000ozpa, still big enough to interest mid-tier producers," said Dankowski.
The PEA outlined an initial capital spend of US$517 million, with the first 11 years of a 24-year mine life generating an after-tax internal rate of return of 31.4%, with a 2.6-year payback.
At the end of June, the company held C$24 million in cash, which is projected to be $10 million by year-end. Moneta estimates it will need one more substantial raise to get Tower to a production decision.
"With the change of scope, we will need $60 million more to get to a construction decision, rather than $160 million if we continue with the PEA plan."
"Having first mover advantage of building a mill in the Timmins East district will be a strategic competitive advantage in the region, which may help us bring in a strategic investor," VP business development Ardem Keshishian told Mining Journal
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