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Almaden Minerals (TSX: AMM)(NYSE: AAU) owns 100% of the Tuligtic project in Puebla State, Mexico. Tuligtic covers the Ixtaca Gold-Silver Deposit, which was discovered by Almaden in 2010.

The Ixtaca Deposit currently hosts an N.I. 43-101 compliant Measured and Indicated resource of approximately 93 million tonnes grading 0.55 g/t Au and 32 g/t Ag, for a total of 1.65M ounces of gold and 96.7M ounces of silver. Metallurgical recoveries for both gold and silver are forecast to be in the range of 90%.

In April 2016, Almaden filed an amended Preliminary Economic Assessment (PEA) of the Ixtaca deposit, which estimates an economically robust project generating an after-tax IRR of 30% using US$1150/oz gold and US$16/oz silver prices. The project would produce a total of 724,000 ounces of gold and 49 million ounces of silver over a 13 year mine life. Read more about the Ixtaca Deposit here.

The PEA demonstrates that Ixtaca is one of Mexico’s premier precious metals deposits. Almaden's focus is now on advancing project engineering in a careful and deliberate manner and concurrently optimizing project design. In addition, significant exploration potential remains at Ixtaca and Almaden intends to turn its focus to this aspect of the project as market conditions allow.

Key highlights of the PEA Update include (using US$1,150/oz Au and US$16/oz Ag):

  • Initial Capital of $100.2 million;
  • After-tax payback of initial capital in 2.6 years;
  • Pre-tax NPV(5%) of $266 million and internal rate of return of 39%;
  • After-tax (including new Mexican Mining Duties) NPV(5%) of $166 million and internal rate of return of 30%;
  • 36 million tonnes of mill feed averaging 0.76 g/t gold and 47 g/t silver (average head grade of 1.42 g/t gold equivalent using a 72:1 silver to gold ratio);
  • Total LOM production of 724,000 ounces of gold and 49 million ounces of silver (1.4 million gold equivalent ounces, or 101 million silver-equivalent ounces at a 72:1 silver to gold ratio);
  • Operating cost $684 per gold equivalent ounce, or $9.50 per silver equivalent ounce;
  • 97% of the PEA Update mill feed is in the Measured and Indicated categories of the resource model.

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MARKET SUMMARY

INDICES

Name Last Change
DOW 21082.90 70.53
S&P 500 2415.07 10.68
NASDAQ 6205.26 42.23
TSX 15410.73 8.76
TSX-V 799.86 2.53

Resource Commodities

Name Last Change
Gold 1255.12 0.56
Silver 17.17 0.01
Copper 2.58 0.48%
Platinum 948.50 0.000
Oil 51.36 0.21%
Natural Gas 3.21 0.31%
Uranium 19.94 N/A
Zinc 1.27 0.0032

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