Talamore gets key road permit for Coffee gold project

AI desk brief

Talamore Mining has cleared the final major permit for the 214-km all-season road to its Coffee gold project in Yukon, removing a key infrastructure bottleneck ahead of a planned construction decision early next year. The company says the road segment should cost C$71.3 million under the February PEA, while the overall project is backed by a C$638 million financing package assembled in July.

The project funding includes C$400 million of secured debt led by Pierre Lassonde and Trinity Capital Partners, C$149.5 million of equity led by Stifel Canada and BMO, and up to $88 million from warrant exercises. National Bank’s Rabi Nizami called the permit a positive readthrough for the Yukon mining industry, and reiterated a constructive view on Coffee as a near-term development opportunity for an intermediate-scale, low-cost heap leach gold project with rapid payback economics.

Coffee remains one of Canada’s larger undeveloped primary gold projects, with 2.96 million oz measured and indicated resources and 800,000 oz inferred. The PEA outlined average output of 249,000 oz/year in the first five full years, 217,000 oz/year over a 13-year life, and all-in sustaining costs of $1,274/oz. At a long-term gold price of US$3,620/oz, the study showed a 5% NPV of US$2.3 billion, 48% IRR, and 1.7-year payback, though Talamore still needs quartz mining and water licences before a construction decision can be made.