Leagold Mining Corp reports that an updated feasibility study has been completed by independent consultants, RPA Inc., for its Santa Luz project in Brazil that incorporates project optimizations and updated capital and operating cost estimates. Highlights from the Updated Feasibility Study include:

Capital cost to complete and re-start the mine of $82 million, including $12.3 million of working capital and first fills

• Proven and Probable open pit mineral reserves of 28.2 Mt at 1.39 g/t Au containing 1.26 Moz
• Gold production of 1.06 Moz over an 11-year mine life at AISC of $856/oz
• After-tax cash flow of $302 million, using $1,200/oz gold price
• Strong economics: IRR of 47% and NPV5% of $149 million
• Operating plan includes an initial period with a significantly reduced open pit strip ratio (Phase 1 of LOM).

Leagold CEO Neil Woodyer commented: “We are making good progress with the integration of the three recently acquired operating mines in Brazil, and we have now completed an independent updated feasibility study on the Santa Luz project. The impressive results demonstrate the potential for Santa Luz to be a strong cash flow generator with potential to add over 100,000 oz/y production following a short 10-month construction period. As Santa Luz was a previously operating mine, all major infrastructure is in place and the new construction is mostly limited to retrofitting the plant for gold recovery using resin versus carbon.

“Furthermore, we have designed the Santa Luz mine plan to include a phased open pit mining schedule. This mine schedule starts with a low-strip ratio pit design that is included within the full mine plan, which allows for future decision points that may also include further upside potential from underground mining. With a high IRR and low costs, Santa Luz is a very attractive project.

“A key next step for Leagold is completion of our site-wide review of Los Filos mine in Mexico, with several studies nearing completion related to the Bermejal underground mine, a potential CIL plant, and an enlarged Los Filos open pit mine plan. Completion of these studies and their integration into a site wide long-term plan for Los Filos is anticipated for the end of 2018, so we can then determine our preferred capital allocation priorities.”