The project would yield an after-tax net present value of C$48.3 million at a at a 5% discount rate and an internal rate of return of 43% at a US$1,600 per ounce gold price following an initial capital cost of $22.1 million.
The company is progessing to complete a pre-feasibility study expected to be completed by year end with permitting for the Bachelor mill and tailings expansion ongoing.
"The open pit resource at Barry is already in the measured and indicated category, which can be converted into reserves with a PFS so there is no more drilling required," Bonterra Resources president and CEO Marc Andre Pelletier told Mining Journal.
Bonterra aims to use Barry as a cash flow generator to allow it to invest in the development of the Barry underground deposit, which would bring production up to 60,000oz/y. "We would like to bring the underground portion of the deposit at Barry into production in three to five years," said Pelletier.