Perpetua Resources has announced progress at the Stibnite Gold Project in the US with the completion of basic engineering and the signing of detailed engineering and procurement contracts.
The company has signed a detailed engineering studies contract with Ausenco Engineering USA South and a procurement contract with Idaho Power for powerline materials.
The contracts mark a step in advancing the project towards a construction decision.
The Stibnite Gold Project is located in Valley County, near Yellow Pine, Idaho. It is considered to be one of the “top ten” gold deposits in the US.
The recently released 2024 Financial Update by Perpetua highlights the project’s economics, showing a $3.7bn after-tax net present value (NPV) and an after-tax internal rate of return (IRR) exceeding 27% at spot prices.
The project remains “resilient” even at lower prices, with a $1.4bn after-tax NPV and 15.4% after-tax IRR at long-term consensus prices.
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By GlobalDataThe all-in sustaining costs are expected to average $435/oz of gold during the first four years of production and remain below $760/oz over the life of the mine.
This positions the Stibnite Gold Project as a low-cost operation in Tier One jurisdictions such as the US, Canada and Australia.
Perpetua Resources president and CEO Jon Cherry said: “The Stibnite Gold Project is among an elite class of gold projects, with industry-leading costs, a world-class reserve of 4.8 million gold ounces and an annual production profile of approximately 300,000oz over a 15-year life.
“With the Final Record of Decision published and basic engineering complete, Perpetua looks forward to finalising our few remaining ancillary permits, and securing financing to start construction in 2025 to become a reliable source of the critical mineral antimony for defence needs.”
Perpetua’s Financial Update also supports the company’s loan application process with the US Export-Import Bank’s $1.8bn letter of interest under the Make More in America and China Transformational Exports programmes.
It indicates a more than 15% increase in US jobs created through the project’s life, potentially boosting the existing $1.8bn indication of interest from the US Export-Import Bank.
Perpetua is evaluating strategic and financing opportunities, supported by financial advisors.
The company is progressing execution planning to prepare the project to be construction-ready once all required permits are received.
Idaho Power president and CEO Lisa Grow said: “We are pleased to partner with Perpetua Resources to power the country’s next major mineral resource project right here in Idaho.
“This collaboration not only supports our nation’s economic growth but also strengthens our national security by ensuring a stable domestic supply of the critical mineral antimony. Our commitment to providing safe, reliable, affordable energy aligns with Perpetua’s mission to responsibly produce these essential minerals.”
Last month, Perpetua announced the receipt of the Final Record of Decision from the US Forest Service, approving the Stibnite Gold Project’s mine plan.
