On September 12, 2016, Luna Gold released the results of a pre-feasibility study for its Aurizona Gold Project. The pre-feasibility study is based on a new mine plan and mineral reserve estimate and outlines the design of an open-pit gold mine producing an average of 150,000 ounces of gold per year for the first five years. Using a base case gold price of US$1250 per ounce, the project demonstrates strong financial returns with an after-tax IRR of 35% and an NPV using a 5% discount rate of US$201 million. Initial capital costs are estimated at only US$146 million due to the Company’s ability to leverage significant existing infrastructure, with life-of-mine sustaining capital estimated at US$47 million. All-in sustaining costs are estimated at US$708 per ounce of gold produced. A feasibility study for the project is underway, the results of which are expected to be made public in early Q2-2017. The Company’s objective is to restart operations at Aurizona in 2018.