Phase I evaluated the initial development of Metates as a low cost, scalable heap-leach operation.

The PEA estimated that the net present value (NVP) of Metates is C$1.43 billion, with a 35 per cent internal rate of return at US$1,600 per ounce of gold and $22 per ounce of silver over a 31-year mine life.

In the first 15 years of mine life, the PEA estimated an average annual production of over 110,000 ounces of gold and 2.5 million ounces of silver.

Overall, the PEA demonstrated strong financial performance and rapid capital payback in developing Metates as a sulphide heap leach operation, stated the company.

“The Metates PEA is a key milestone towards Chesapeake’s larger vision of becoming a mid tier gold and silver producer,” said Alan Pangbourne, CEO of Chesapeake.

Randy Reifel, Chesapeake’s chairman, added, “I believe the revised approach to Metates is a potential “game changer” for Metates and the gold mining industry at large.”

Adding to the 2,300 metres of drilling that has already been completed, the company will pursue areas identified by the PEA for future exploration.

The Metates project is a gold-silver property in Durango, Mexico. According to the company, the property is one of the largest undeveloped gold and silver deposits in Mexico.

Chesapeake Gold is focused on the discovery, acquisition, and development of major gold-silver deposits in North and South America.

Chesapeake Gold Corp. (CKG) remains steady, trading at $3.99 per share as of 9:36 am ET.