en.Wedoany.com Reported - Freeman Gold Corp. (TSXV: FMAN; US-OTC: FMANF) has released the feasibility study for its Lemhi Gold Project, showing a tripling in value compared to a previous economic study, an extended mine life, and the establishment of a 1-million-ounce gold reserve. The company's shares surged following the announcement.

According to a report released by Freeman on Monday, the study assigns a post-tax net present value (at a 5% discount rate) of $696 million (approximately C$988.9 million) to the Lemhi project, a 227% increase from the preliminary economic assessment (PEA) completed in 2023. The primary driver is a cumulative 130% rise in gold prices since 2023. The feasibility study boosts the project's internal rate of return by 12 percentage points to 34% and extends the mine life by four years to 15 years. However, the initial capital cost for the open-pit project has increased by 73% to $329.7 million. The Lemhi project is located approximately 300 kilometers northeast of Boise, the capital of Idaho.

Freeman CEO Bassam Moubarak stated that the completion of the Lemhi feasibility study is a significant milestone in advancing the gold project and confirms it as one of the most attractive undeveloped gold mines in the United States. He emphasized that for every dollar of initial capital invested, the project generates over two dollars in post-tax net present value, reflecting its capital efficiency and robust economic foundation.

This feasibility study places the Lemhi project among the few advanced-stage gold development projects in Idaho, alongside Perpetua Resources' (TSX, Nasdaq: PPTA) Stibnite project, Liberty Gold's (TSX: LGD) Black Pine project, and Integra Resources' (TSX-V: ITR; NYSE-A: ITRG) DeLamar project. The state is better known for silver mining than gold.

Freeman's shares surged nearly 20% on the day to $0.34 per share, hitting a one-month high, giving the company a market capitalization of $93 million. The stock has traded in a range of $0.10 to $0.46 over the past 12 months.

The Lemhi project is expected to produce 972,000 ounces of gold over its life, with all-in sustaining costs of $1,718.95 per ounce, based on a benchmark gold price of $3,650 per ounce. Moubarak said that compared to the 2023 PEA, the feasibility study increases production by approximately 120,000 ounces, with the mine plan enhancing the crushing and grinding capacity of the processing plant. The higher production estimate is based on infill drilling completed at the Lemhi project last year. Freeman stated that a total of 92,696 meters of drilling has been completed at the project.

Freeman plans to seek inclusion in the federal FAST-42 permitting fast track, which has already been secured by Idaho-based peer developer Liberty Gold for its Black Pine project.