- White Gold (TSXV:WGO) further de-risked its eponymous project in the Yukon with a preliminary economic assessment detailing a robust open-pit mine with potential for long-term development.
- Production is estimated to average 188,000 ounces per year over a 9.4-year mine life.
- The small-cap gold stock last traded at C$1.97, adding 109.57% year-over-year and 258.18% since 2021.
White Gold (TSXV:WGO) further de-risked its eponymous project in the Yukon with a preliminary economic assessment (PEA) detailing a robust open-pit mine with potential for long-term development.
The PEA argues for an after-tax net present value of C$1.86 billion (5%) with a payback period of 1.5 years at a base case of only US$3,600 per ounce of gold. This represents average production of 188,000 ounces per year over a 9.4-year mine life.
This article is a journalistic opinion piece which has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
In terms of after-tax free cash flow, we’re talking about C$280 million per year, made sustainable by all-in sustaining costs of only US$1,482 per ounce.
The study draws on only 60% of the project’s latest resource estimate, with drilling results from 2025 and ongoing drilling in 2026 to potentially increase the ounce count in a future estimate.
According to Friday’s news release, the company will now turn its attention to studying more than 25 data-driven targets across the White Gold project’s 55,000-hectare land package to usher it towards its next phase of economic study.
Leadership commentary
“Our maiden PEA is a significant milestone for White Gold, delivering a project with strong economics and significant growth potential. Few gold projects anywhere offer this combination of scale, potential returns, favourable jurisdiction and upside. I would like to thank and congratulate our team and all stakeholders who have supported us over the years in advancing the White Gold project from a conceptual exploration idea towards a development asset with a PEA that compares very well to its peers in the sector,” David D’Onofrio, Chief Executive Officer of White Gold, said in a statement.
“Even more exciting is the growth potential of the White Gold project based on previous and ongoing drilling not included in the PEA, future drilling and the substantial potential of our underexplored truly district-scale land package within the White Gold district, which has seen significant recent investment by prominent mine builders further advancing it towards becoming a leading Canadian mining camp,” D’Onofrio added. “We are very fortunate to have the right projects, in the right place, at the right time, with a great team and supporters to continue to responsibly build value for all stakeholders.”
About White Gold
White Gold owns a 305,102-hectare portfolio in the Yukon hosting a multi-million-ounce resource complemented by numerous discoveries and prospective targets bordering sizable third-party gold discoveries.
White Gold stock (TSXV:WGO) last traded at C$1.97, adding 109.57% year-over-year and 258.18% since 2021.
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