Cartier Resources Inc Announces Strong Economic Viability for Cadillac Project
News related to:Cartier Resources Inc · 3 min read
Cartier Resources Inc has announced the results of an updated Preliminary Economic Assessment (PEA) for its 100%-owned Cadillac Project, located in Val-d'Or, Quebec. The project, which was previously named the Chimo Mine Project, now demonstrates strong economic viability, with after-tax net present value (NPV) of C$1.001 billion and an after-tax internal rate of return (IRR) of 26.6% at a base case gold price of US$3,600 per ounce (oz).
According to the PEA, the project is expected to generate a life-of-mine after-tax free cash flow of C$2,772 million over a 16.2-year mine life. The initial capital expenditure (CAPEX) is estimated at C$275.8 million, with average annual gold production of 100,000 oz over the life of the mine. The total recovered gold production is forecasted to be 1,610,000 oz, with a metallurgical recovery rate of 95%, supported by a 2026 metallurgical testwork program.
The project's processing strategy includes an initial toll milling phase at a rate of 3,000 tonnes per day (tpd) for the first year, followed by an on-site processing plant that will expand to 4,300 tpd by the fifth year. The mine will employ conventional longitudinal longhole stoping, with a peak mining rate of 4,300 tpd. The processing plant is designed to achieve a gold recovery of 95% at a grind size of 50 microns.
The economic analysis was performed using a 5% discount rate, with a base case gold price of US$3,600/oz and an exchange rate of 1.38 C$/US$. On a pre-tax basis, the project generates an NPV of C$1,679 million and an IRR of 35.5%. On an after-tax basis, the NPV is C$1,001 million and the IRR is 26.6%.
Philippe Cloutier, President and CEO of Cartier Resources Inc, stated, "The positive results of the study demonstrate the project's economic viability at the PEA level while highlighting several opportunities for further optimization. Importantly, the project has been designed as a fully underground mining operation, minimizing its surface footprint and supporting a responsible development approach."
Ronan Déroff, Vice President Exploration of Cartier Resources Inc, added, "The current PEA is only the beginning. With ~35,000 meters of drilling completed in 2025-2026 yet to be incorporated, and compelling new gold discoveries emerging at the Contact and Hope Sectors, we believe Cadillac offers substantial resource-growth potential and significant exploration upside along the 15-kilometer Cadillac Fault."
The PEA incorporates the updated mineral resource estimate announced on December 18, 2025, and the metallurgical results announced on May 14, 2026. The mineral resource estimate is based on 4,477 drill holes, totaling 535,360 meters drilled and 167,978 assays. The mineral resource estimate includes internal dilution for the underground scenario and is considered to have reasonable prospects for economic extraction.
The project's infrastructure requirements have been evaluated to optimize operational efficiency, safety, and environmental management. The required infrastructure includes underground mine portals, lateral development, vertical development, waste rock and overburden management facilities, tailing management facility, ROM stockpiles, water management infrastructure, electrical powerlines and substations, mine offices, dry and maintenance facility, and other supporting infrastructure.
The development of the Cadillac project continues under an approach focused on sustainable development, respect for stakeholders, and environmental protection. An environmental geochemical characterization of the waste rock, ore, and tailings generated during processing is being initiated to optimize the management of these materials and mining water management in order to limit impacts on the receiving environment.
In summary, the updated PEA for the Cadillac Project by Cartier Resources Inc indicates a robust economic outlook, with significant potential for growth and exploration. The project's design as a fully underground mining operation and its strategic location offer a promising future for the company.