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Metals Exploration released initial estimates from internal studies on its La India gold project in Nicaragua on Friday, revealing significant enhancements compared to the bankable feasibility study (BFS) conducted by SRK Consulting in 2022.
The AIM-traded firm said the updated projections suggested a marked improvement in both operational and financial metrics for the project.
It said the internal study extended La India’s projected mine life to 12.4 years, compared to 8.4 years in the 2022 BFS, and introduced a combined open-pit and underground mining approach.
Annual gold production was estimated to more than double to 145,000 ounces, with total life-of-mine (LoM) production increasing from 548,000 ounces to 1.8 million ounces.
Yearly ore production was also projected to rise, from 890 kilotonnes to 1,400 kilotonnes.
With the 2022 study updated to match the current gold price assumption of $2,500 per ounce, the project’s net present value (NPV) at a 6% discount rate more than doubled to $882m, up from $338m in the 2022 BFS.
However, the internal rate of return (IRR) decreased to 54%, compared to 71% in the BFS, primarily reflecting the higher initial capital expenditure of $122m – up from $116m – and an increased all-in sustaining cost of $1,176 per ounce, compared to the previous $1,058 per ounce.
Metals Exploration said it was targeting the start of production at La India by the end of 2026.
The company said it was finalising negotiations to acquire a second-hand processing plant to support the increased ore capacity.
Key project milestones include the appointment of an engineering firm in February 2025 to start construction planning, with exploration and definition drilling scheduled for April.
Civil works were expected to begin in May.
“We are delighted to have completed the acquisition of Condor Gold and are now able to share the initial estimates from internal studies on La India following a site visit by the Metals Exploration team in November,” said chief executive officer Darren Bowden.
“We are well advanced with efforts to commence construction production, and have an established in-country team of Spanish speakers who I have previously worked with.
“Our aim is to bring La India into production before the end of 2026, in order to replace cash flow from Runruno as it approaches the end of life of mine.”
At 1217 GMT, shares in Metals Exploration were down 0.97% at 6.1p.
Reporting by Josh White for Sharecast.com.
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