22. ECONOMICAL ANALYSIS
22.1 BASE CASE
For the base case, based on the treatment of 1 805 000 metric tonnes a year using
the cyanidation process, at a recovery rate of 88% of the gold contained in the 17.3 M
tonnes of ore, with a grade of 0.70 gram per metric tonne. The average milling cost is
12.75 US$/tm with a CAPEX of 52,922,173 US$.
The production of gold for this project is at 640 US$/oz.
For the purpose of the study, the price of gold is kept constant à 1,250 US$/oz. with
an exchange rate of 1.00 CA$ = 1.00 US$.
An actualisation rate of 5% has been retained for the calculation of the economic
indicators and the project is 100% financed by equity.
To the mining industry specifically, Mali offers a tax free period for the first five years
of production, allowing for a swift depreciation rate (five years in the present case).
The taxation rate is 35% for the remaining years of the project.
