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Amara Mining PEA Shows “Good Economics” For Sega Project, Says Broker

Amara Mining's (LON:AMA, TSE:AMZ) preliminary economic assessment (PEA) shows the potential of the Sega gold project in Burkina Faso, according to broker SP Angel.

Today, the West African miner, formerly known as Cluff Gold, revealed it has filed a report detailing the results of the PEA for Sega.

Amara previously highlighted that Sega has an internal rate of return of 48%, with a post-tax net present value of US$49.5mln using a gold price of US$1,500 per ounce and a discount rate of 10%.

It has contained gold of 162,825 ounces over a 21-month initial mine life, while cash costs excluding royalties are US$821 per ounce.

Meyer says the project looks worth pursuing based on these numbers.

"The PEA shows the potential to develop Sega at relatively low cost while at the same time extending the mine life of Kalsaka," he added.

Kalsaka is located just 20 kilometres down the road from Sega and ore hauled from Sega to Kalsaka's heap leach processing plant will be used to improve its production profile.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.