One Step Closer to Final Permitting for Stibnite Mine

Mike Fagan

by Mike Fagan
 

Midas Gold (TSX: MAX)(OTC: MDRPF) — currently trading below C$9.50 per share following a 1-for-10 share consolidation in preparation for its NASDAQ uplisting — has released a Technical Report based on the recently completed positive Feasibility Study for the flagship Stibnite Gold Project located in central Idaho.

The big takeaway is that — at a very robust 4.8 million ounces of gold reserves — Stibnite not only has the potential to be America’s next great gold mine but also a strategic source of antimony [meeting approximately 30% of US-demand] at a time when America produces none.

A couple of other key highlights from the Feasibility Study include:

  • Expected Annual Average Gold Production of 466,000 ounces at All-in Sustaining Costs of US$427/oz during First 4 Years of Operation
     
  • 120 Million Pounds of Antimony Production
     
  • At US$1,850/oz gold, Robust Project Economics Yield NPV (5%) of US$1.9 Billion
     
  • Average Annual Free Cash Flow of US$594 million in First 4 Years of Operation

Midas president & CEO, Ms. Laurel Sayer, commented via press release:
 

"The Feasibility Study represents a major milestone for Midas Gold as we continue to advance the Stibnite Gold Project. The positive results demonstrate that our vision to combine economic development with environmental restoration of a brownfield site is technically, financially and environmentally feasible. Each step of the way, our approach to responsible, restorative, modern mining in Idaho has been reconfirmed. We are now one step closer to seeing the river and water quality improved, 550 direct jobs for Idahoans and production of the critical mineral, antimony."


In addition to those 500-plus direct paying jobs as mentioned by Ms. Sayer, the Feasibility Study also verifies a positive local economic benefit to Idaho communities by bringing in more than $1 billion in initial capital investment.

On the environmental, social, and corporate governance (ESG) front, Midas has reached an agreement with federal agencies to begin environmental restoration at Stibnite with the aim of improving water quality directly above the Salmon River, reopening a blocked fish passage, and cleaning up legacy tailings and waste dumps left over from previous operators.

That agreement should bode well for management in their efforts to attain final permitting on the way to what the Midas Gold team has long strived for: a positive Record of Decision for mine construction at Stibnite.

Our own Gerardo Del Real of Junior Resource Monthly caught up with Midas Gold chairman, Marcelo Kim, to discuss positive Feasibility Study, the newly revamped board, and next-steps to advancing Stibnite to the construction stage. Click here to listen to the interview.

Be sure to also click here for our most recent report on Midas Gold.

Yours in profits,

Mike Fagan

Mike Fagan
Editor, Resource Stock Digest
 

Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad, Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest and Hard Asset Digest readers.