The value of the Talisman gold mine project has more than doubled, according to the results of an updated pre-feasibility study, Auckland-based New Talisman Gold Mines said.
“The updated study demonstrates the robustness of the project economics," New Talisman Gold Mines chief executive Matthew Hill said in a statement on Tuesday, adding that it shows a 118 percent internal rate of return, "demonstrating the significant value to investors of this world class mine.”
The updated pre-feasibility study showed net present value jumped to $35.9 million at a 9 percent discount rate, from the $15.4 million reported in the previous 2013 study.
Key drivers for this increase in value include increased ounces available for extraction and an extended mine life, the company said.
The stock slipped 5.3 percent to 1.8 cents, giving up some of yesterday's 12 percent gain.