Fundamental Research has raised their Fair Value to C$0.83 and has maintained SGO on their list of top picks.
Read Full Sonoro Gold Update from Fundamental Research Here
Updated PEA Highlights:
- Updated PEA for proposed open pit, heap leach mining operation in Sonora Mexico
- An initial 1st year production rate of 12,000 tpd; increased to 16,000 tpd for LOM
| SensitivityAnalysis | 2023 PEA | SensitivityAnalysis | 2026 PEA | |||||
| -20% | Base Case | 20% | -20% | Base Case | 20% | Spot | ||
| Gold Price ($/oz) | $1,600 | $1,800 | $2,000 | Gold Price ($/oz) | $2,800 | $3,500 | $4,200 | $5,186 |
| Silver Price ($/oz) | $20 | $23 | $28 | Silver Price ($/oz) | $38 | $48 | $58 | $88 |
| Pre-Tax NPV(5) | $27.34m | $71.42m | $116.84m | Pre-Tax NPV(8) | $166M | $360M | $555M | $846M |
| Pre-Tax IRR (%) | 30% | 59% | 85% | Pre-Tax IRR (%) | 37% | 65% | 89% | 121% |
| After-Tax NPV(5) | $19.14m | $47.68m | $77.02m | After-Tax NPV(8) | $102M | $224M | $344M | $525M |
| After-Tax IRR (%) | 23% | 45% | 63% | After-Tax IRR (%) | 29% | 50% | 68% | 91% |
| After-Tax Payback | 4.1 | 2.9 | 2.4 | After-Tax Payback | 2.6 | 1.7 | 1.3 | 1.0 |
- Same geological data as prior 2023 MRE but lower cutoff grade
- Measured & Indicated Mineral Resources 51.8 Mt
- 617,000 oz of Au @ 0.37 g/t
- 6,230,000 oz of Ag @ 3.7 g/t
- 644,000 oz of AuEq @ 0.39 g/t
| Classification | 2023 PEA | 2026 PEA | ||||
| Tonnes(Mt) | Au(koz) | AuEq(koz) | Tonnes(Mt) | Au(koz) | AuEq(koz) | |
| Measured | 9.7Mt | 129 | 133 | |||
| Indicated | 19.9Mt | 280 | 290 | 42.1Mt | 489 | 511 |
| Inferred | 10.6Mt | 140 | 150 | 8.8Mt | 93 | 97 |
- Gold recovery of 72% and silver recovery of 27%
- 10-year LOM with 459 k oz of AuEq
- LOM annual average production of 46 k oz AuEq at 0.38 g/t AuEq
- Initial CAPEX costs of $83 million
- $2M Site and General
- $4M Utilities and Services
- $47M Process Plant
- $9M Owners Costs
- $10M Pre-Stripping & Mine Development
- $11M Contingency
- Sustaining capital costs of $26 million
- Cash operating costs of $1,842/oz AuEq
- AISC of $1,902/oz AuEq
- Payback period of 1.7 years
- Significant potential for resource expansion & extended LOM
- Less than 30% of property’s mineralized zones drilling & assays to date
| Assumption /Results | 2023PEA | 2026PEA |
| Pre-Tax NPV(8) ($ million) | $71.4M | $360M |
| Pre-Tax IRR (%) | 59% | 65% |
| After- Tax NPV(8) ($ million) | $47.7M | $224M |
| After- Tax IRR (%) | 45% | 50% |
| Revenues ($ million) | $535.6M | $1,602M |
| Total Tonnes Processed (million) | 28.6M | 52.8M |
| Total Tonnes Waste Mined (million) | 60.0M | 82.1M |
| Mine Life (years) | 9-Years | 10-Years |
| Strip Ratio (waste: mineralization) | 2.10 | 1.6 |
| Gold Recovery (%) | 72% | 72% |
| Silver Recovery (%) | 27% | 27% |
| Gold Price ($/Au oz) | $1,800 | $3,500 |
| Silver Price ($/Ag oz) | $23.00 | $48.00 |
| Gold Grade (g/t Au) | 0.43 | 0.36 |
| Gold Equivalent Grade (g/t AuEq) | 0.45 | 0.38 |
| Silver Grade (g/t Ag) | 3.75 | 3.7 |
| Total Gold Equivalent Recovered (koz) | 297,575 | 458,863 |
| Initial CAPEX Costs ($ million) | $15.5M | $83M |
| Sustaining Capital Costs ($ million) | $15.5M | $26M |
| LOM Operating Costs ($ million) | $385.4M | $820M |
| Cash Operating Cost ($/AuEq oz) | $1,295 | $1,842 |
| AISC ($/AuEq oz) | $1,395 | $1,902 |
