Stormlands Mining, an Ireland-based data analytics company, has released a new case study on Sonoro Gold’s Cerro Caliche project in Mexico. The company’s artificial intelligence achieved results that the company said doubled the project’s evaluation.
Using updated gold and silver prices, Stormlands modeled an increase in net present value (NPV) of $253 million. Drawing on the same data set, lifetime mine revenues increased from US$1.6 billion in the base case to US$2.24 billion, with lifetime EBITDA increasing from US$726.2 million to US$1.35 billion. The typical payback period increased from 1 year and 7 months to 11 months.
In a press release, Stormlands CEO Roisin O’Connell said these numbers are a clear signal that economic reports should be updated dynamically as metal prices change. “In this published case study, we only updated the commodity price assumptions, keeping the mining plan, costs, recoveries, capital and financial assumptions unchanged. Even this single change has a material impact on the valuation,” she said.
The case study follows Stromlands’ previous efforts to create a set of resources for mining companies to forecast and evaluate economic conditions. Other studies have re-examined the Whistler and MPD projects.
The Cerro Caliche gold project is Sonoro’s leading open-pit leach mining operation.
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