True Gold's North Kao Deposit to Generate over US$118 Million in Free Cash Flow to Karma
Phase II Expansion Scenario Adds Average of Approx. 118,000 Ounces Gold per Year for 2.5 Years
VANCOUVER, BRITISH COLUMBIA--(Oct. 21, 2014) - True Gold Mining Inc. (TSX VENTURE:TGM) ("True Gold" or the "Company") is pleased to announce that the North Kao Deposit ("North Kao") will generate an additional US$118M in after-tax free cash flow to the Karma Gold Project ("Karma"). As a result of its high gold grades, low capital costs, and synergies to be realized by sharing future infrastructure, North Kao yields an after-tax IRR of over 200%.
True Gold has advanced North Kao from blind discovery to an independent Preliminary Economic Assessment ("PEA") in a little over a year. This demonstrates the tremendous prospective upside, and potential economic viability of the Karma mining district, and how True Gold could potentially phase new discoveries into a future mine plan. North Kao adds approximately US$70 million to Karma's after-tax net present value.
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Published: 21 October 2014
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Written by Editor
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