1911 Gold Corp. press release
1911 Gold Delivers Positive PEA for True North Highlighting Robust Economics with Low Capital Intensity and High Returns
TSXV - TSX Venture Exchange · Gold · Lithium · Canada
1911 Gold Delivers Positive PEA for True North Highlighting Robust Economics with Low Capital Intensity and High Returns
1911 Gold Delivers Positive PEA for True North Highlighting Robust Economics with Low Capital Intensity and High Returns PR Newswire
VANCOUVER, BC, Feb. 10, 2026 /PRNewswire/ - 1911 Gold Corporation ("1911 Gold" or the "Company") (TSXV: AUMB) (OTCQX: AUMBF) (FRA: 2KY) is pleased to announce significant positive results from the independent Preliminary Economic Assessment ("PEA") for the True North Gold Project ("True North"), located in southeastern Manitoba, Canada. The PEA was prepared by AMC Mining Consultants (Canada) Ltd. ("AMC"), in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Project ("NI 43-101"), with all financial figures expressed in Canadian Dollars unless otherwise stated.
The PEA outlines a robust gold mining operation utilizing the fully built and permitted infrastructure, including shafts, underground workings, and the processing and tailings management facility. 1911 Gold has estimated the infrastructure replacement value as being in excess of $400 million. The plan targets steady-state production of 58,114 ounces per annum with a mine life of 11 years. Management will host a webinar on Tuesday, February 10, 2026 at 10am PT (1pm ET), to discuss the PEA results and to answer any questions with respect to the PEA and the planned production restart strategy. Please refer to the details at the end of this release.
PEA Highlights:
Robust Economics (After-tax): Net present value (5%) ("NPV") of $391 million, internal rate of return ("IRR") of 105%, and a payback period of 2.2 years at a long-term gold price of US$3,000 per ounce ("oz"); at a constant gold price of US$4,800/oz, the NPV is $998 million, no calculated IRR due to no years with a negative cash flow, and an almost immediate payback period of 1.0 year.
Production Profile: Steady-state production profile of 1,215 tonnes per day ("tpd") for average payable gold production of 58,100 oz per annum ("oz/year") (Years 3-8) with an 11-year life of mine ("LOM").
LOM Cash Flow: Total payable gold production of 527,100 oz LOM with the current mineral resources, generating $545 million undiscounted after-tax free cash flow1 and generating 326 full-time jobs.
Fully Permitted, Low Capital Project: Initial capital expenditures ("Capex") of $59.2 million, utilizing the currently built and permitted payable infrastructure. Additional Capex of $46.7 million during the first 2 years of ramp-up, and $367.2 million of sustaining capital over LOM with a high profitability index of 6.6 and low peak investment of $59.2 million in Year 1.
Processing: Average diluted mill head grade of 4.32 grams per tonne gold ("g/t", "Au") with gold recoveries of 93.5% over the LOM.
Cash Costs and AISC1: Producing gold at a cash cost of US$1,390/oz and all in sustaining cost ("AISC") of US$1,897/oz.
Near-Term Production: Production due to start in the first half of 2027 ("H1 2027") with test mining planned for the second half of 2026 ("H2 2026").
Production Growth: 1911 Gold has identified excellent potential to increase production by developing recently discovered zones such as San Antonio Southeast ("SAM SE"), San Antonio West ("SAM W"), and Shore which are adjacent to existing infrastructure and not included in the study, in addition to regional targets.
1.
AISC and Free Cash Flow are non-IFRS financial measures and have no standardized meaning under IFRS Accounting Standards ("IFRS"), and may not be comparable to similar measures used by other issuers.
"The delivery of this PEA marks another defining moment for 1911 Gold, outlining a highly efficient, low-capital path to the first phase of production with robust economics and exceptional returns," stated Shaun Heinrichs, President and Chief Executive Officer of 1911 Gold. "This plan leverages existing infrastructure and a mining strategy suited to the ore body, significantly reducing the project's capital intensity and technical hurdles that challenged previous operators. Our staged development approach provides a disciplined roadmap to ramp up operations toward an initial steady-state production. This PEA proves that True North is not just a restart story, but is the cornerstone of a district-scale gold project in one of Canada's premier mining jurisdictions."
Eric Vinet, Chief Operating Officer of 1911 Gold, stated "This PEA outlines a foundational plan to restart operations at True North by optimizing existing infrastructure and confirms the economic viability of a safe and efficient multi-mine operation. Beyond the scope of this study, we see significant potential to further optimize these economics by establishing a centralized 'super-level' on Level 16. By connecting the adjacent zones at Hinge, 007, and, potentially, Cohiba directly to the True North Main Shaft, we can transition to a gravity-fed, horizontal haulage model. The proximity of these zones - notably Hinge, located within 100 m of existing infrastructure - supports the technical rationale for centralized hoisting, which has the potential to materially reduce operating costs."
True North PEA Overview
Table 1: Summary of True North Project Economics
General
Unit
LOM Total / Avg.
Gold price assumption (Long Term)
per ounce
US$3,000
Gold price assumption (2027)
per ounce
US$3,500
Gold Price assumption (2028)
per ounce
US$3,200
Exchange rate
($US:$CAD)
0.72
Mine life
years
11
Total mill feed
tonnes
4,066,000
Average diluted grade (LOM)
g/t Au
4.32
Economics (pre-tax)
Unit
LOM Total / Avg.
Net present value (NPV 5%)
millions
526.7
Internal rate of return (IRR)
%
118 %
Payback
years
2.2
LOM avg. annual cash flow
millions
67.1
LOM cumulative cash flow
millions
732.8
Steady State (yrs 3-8) avg. annual cash flow
millions
93.0
Economics (after-tax)
Unit
LOM Total / Avg.
Net present value (NPV 5%)
millions
390.6
Internal rate of return (IRR)
%
105 %
Payback
years
2.2
LOM avg. annual cash flow
millions
48.9
LOM cumulative cash flow
millions
544.5
Steady Sate (yrs, 3-8) avg. annual cash flow
millions
68.2
Profitability index (NPV/initial capital)
ratio
6.6
Peak investment (Annual)
millions
59.2
Production
Unit
LOM Total / Avg.
Mill head grade
g/t Au
4.32
Mill head grade (years 2029-2034)
g/t Au
4.40
Mill recovery rate (average LOM)
%
93.5 %
Average mining rate (years 2029-2034)
tpd
1,215
Production cont…
Unit
LOM Total / Avg.
Average annual gold production LOM
ounces
47,945
Average gold production (years 2029-2034)
ounces
58,114
Peak grade (year 2031)
g/t Au
4.70
Peak gold production (year 2031)
ounces
61,327
Total LOM recovered gold
ounces
527,400
Operating Costs
Unit
LOM Total / Avg.
Mining cost
$/t milled
175
Processing cost
$/t milled
38
G&A cost
$/t milled
37
Total operating costs
$/t milled
250
Refining & transport cost
$/oz
3.17
Royalty NSR
%
0 %
Cash costs*
US$/oz
1,390
AISC**
US$/oz
1,897
Capital Costs
Unit
LOM Total / Avg.
Initial capital
millions
59.2
Pre-commercial production capital
millions
46.7
Sustaining capital
millions
367.2
Closure costs
millions
7.3
Salvage value
millions
2.3
Notes
* Cash costs consist of mining costs, processing costs, mine-level general & administrative expenses and refining charges and royalties.
** AISC includes cash costs plus sustaining capital, closure cost and salvage value.
The PEA is preliminary in nature, includes inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Sensitivities
1911 Gold has conducted a sensitivity analysis using the PEA financial model on the base case pre-tax and after-tax NPV and IRR of the Project, using the following variables: metal price, initial capex, total operating costs, and foreign exchange. Table 2 shows the after-tax sensitivity analysis results at various long term gold price assumptions.
As shown in Table 3 and Table 4, the sensitivity analysis revealed that the project is most sensitive to changes in gold prices, and foreign exchange and less sensitive to capital and operating costs.
Table 2: After-Tax Sensitivity Summary
Gold Price
(US$/oz)
$2,000
$2,600
$3,000
Long-term
(Base Case)
$3,800
$4,800
$5,500
After-tax NPV(5%), millions
($41)
$247
$391
$665
$998
$1,237
IRR
-1.3 %
50.0 %
105.3 %
611.0 %
NA*
NA*
Profitability index
-0.7
4.2
6.6
11.2
16.9
20.9
Payback (years)
17.0
4.4
2.2
1.2
0.9
0.7
Notes:
* There are no years with negative cash flow to calculate an IRR
Table 3: After-Tax NPV5% Sensitivity
Gold Price
After-Tax NPV5%
Initial CAPEX
(CAD$M)
Total OPEX
($CADM))
FX (CAD$M)
(US$/oz)
(Base Case)
(-25 %)
(+25 %)
(-25 %)
(+25 %)
(-25 %)
(+25 %)
$2,000
($41)
($5)
($82)
$140
($233)
($322)
$213
$2,600
$247
$283
$204
$371
$95
($67)
$476
$3,000
$391
$426
$348
$506
$268
$92
$647
$3,600
$595
$631
$552
$712
$478
$281
$902
$4,000
$731
$767
$688
$1,012
$785
$391
$1,066
$4,700
$971
$1,007
$928
$1,081
$853
$570
$1,365
Table 4: After-Tax IRR Summary
Gold Price
After-Tax IRR
Initial CAPEX (CAD$M)
Total OPEX (CAD$M)
FX (CAD$M)
(US$/oz)
(Base Case)
(-25 %)
(+25 %)
(-25 %)
(+25 %)
(-25 %)
(+25 %)
$2,000
-2 %
4 %
(6 %)
28 %
NA*
NA*
41 %
$2,600
50 %
98 %
31 %
99 %
20 %
(6 %)
167 %
$3,000
105 %
420 %
58 %
214 %
55 %
19 %
516 %
$3,600
341 %
NA*
119 %
1,813 %
159 %
60 %
NA*
$4,000
1727 %
NA*
189 %
NA*
349 %
105 %
NA*
$4,700
NA*
NA*
595 %
NA*
NA*
289 %
NA*
Notes:
* There are no years with negative cash flow to calculate an IRR
Mining
The True North Gold Project will consist of underground mining extraction via four access points: the Main "A" Shaft, the Hinge decline, the Cohiba decline and later the SG-1 decline. Initial mining and development will be through the Main "A" shaft, providing access to Level 16 (-695 metres) and Level 26 (-1,145 metres), and the Hinge decline, maximizing current underground development to accelerate development and minimize initial capital costs. The initial plan for the development is to ramp up to a steady-state daily production rate of 1,215 tpd (from years 3-8).
The mineral deposits and zones used in the mine plan are contained in a number of deposit areas over a lateral distance of over 4,500 metres ('m") and down to depths of over 1,450 m below surface through a series of winzes and internal declines. The deposits are all amenable to underground mining using longitudinal long-hole open stope mining methods, with minimum dimensions of 25 m long by 1.5 m wide by 18 m high between sublevels, assuming 15% dilution with no gold grade and 97% mining recovery. The mining cycle will incorporate a strategic backfill plan, utilizing development waste rock to fill depleted stopes. This will enhance ground stability and significantly reduce operating costs by minimizing the volume of waste material required to be hoisted to surface, thereby optimizing available shaft capacity for high-grade ore.
A total of 4,066,000 tonnes at an average diluted grade of 4.32 g/t Au will be extracted under the current proposed plan for a total of 527,100 oz of payable gold produced.
Table 5: Mining Areas and Projected Production*
Access
Deposit
Tonnes
Grade
Ounces
Shaft/Decline
Zone
t
g/t Au
oz
A Shaft
710 Complex
1,163,297
4.67
174,812
Deep East
196,967
4.94
31,309
L24
189,780
3.83
23,393
Cartwright
284,082
4.14
37,849
Sub-total
1,834,128
4.53
267,363
Hinge Decline
Hinge
191,776
3.98
24,564
L13
71,124
3.02
6,915
007
345,201
3.63
40,332
L10
352,372
5.15
58,390
Sub-Total
960,475
4.22
130,201
Cohiba
Cohiba
71,902
4.73
10,944
SG-1 and new portal
Normandy
1,199,399
4.03
155,557
Total
4,065,904
4.32
564,065
Notes
*Tonnage and grade estimates derived from the Mineral Resource estimate prepared by Lions Gate Geological Consulting (Q.P Susan Lomas, P.Geo), effective date 29 August 2024 (see below). AMC applied a cut-off grade of 2.7 g/t Au to the resource model and then allowed for dilution and mining losses. Gold price used in the cut-off calculation was US$2,500 per ounce, exchange rate of 0.72 CA dollars to one US dollar.
Within the "A" shaft, mineralized material will be loaded on the Level 26 loading pocket and skipped to the mill at surface and, for the decline, accessed deposits will be hauled via trucks to the True North processing facility. Processed tailings will be pumped to the central operating and permitted tailings management facility. Development waste is currently planned to be stored on surface and used for ongoing infrastructure projects, including possible tailings dam wall lifts in the future.
Processing
The fully permitted processing facility operated for a number of years and is reported to have produced 1.93 million oz of gold historically from 9.60 million tonnes at a grade of 6.65 g/t Au. The process plant consists of a crushing and grinding circuit, with a portion of the circulating load passed through gravity concentrators. The concentrate from the gravity concentration is upgraded on a shaking table and the resulting concentrate direct smelted. The tails from the concentration are returned to the head of the grinding mill and the fines from the grinding circuit are fed into a flotation circuit to produce a flotation concentrate which is reground and leached with the remaining process feed using a six-stage carbon-in-pulp ("CIP") circuit. Dissolved gold is then eluted and gold doré is smelted and poured at site with an electric induction furnace.
An upgrade of the crushing circuit is required to restart commercial production, otherwise the remainder of the processing plant is intact and recently operated. Historically, the process plant has recorded average recoveries of 94.0% of contained gold and has operated up to 2,250 tpd.
Table 6: Mining & Processing Inputs
Mine life - Total
years
11
Mining Rate
Underground*
tpd
1,215
Total mill feed
million tonnes
4.07
Gold grade (diluted)
g/t
4.32
Processing
Feed rate*
tpd
1,215
Total tonnes processed
million tonnes
4.07
Mill head grade
g/t Au
4.32
LOM gold recovery
%
93.5 %
Notes:
* Steady state average daily mining rate (Years 3 to 8)
Tailings Management
The Tailings Management Facility ("TMF") is located 1.6 km north of the processing facility in an area naturally defined by bedrock ridges around the perimeter of a flat area. Tailings have been pumped from the processing facility to the TMF via pipeline. During mine operations the tailings are transported as slurry, with 34% solids by weight. An expansion of the facility was completed in 2015 with the construction of the East Tailings Management area, located immediately east of the TMF, including the polishing pond, where water is pumped in and discharged as required. Enough storage exists within the TMF for approximately 775,000 tonnes or over 2 years production under the PEA mine plan and permits are in place to expand the capacity of the TMF as needed.
Figure 1. Tonnage Production Profile
Figure 2. Gold Production Profile
Operating Costs
Operating costs have been estimated using the following sources and assumptions:
Mining unit costs have been estimated based on AMC benchmark data as well as 2025 quotes and 1911 Gold historical costs escalated as per the Bank of Canada inflation calculator.
Processing unit costs have been estimated based on AMC benchmark data, as well as 1911 Gold historical costs escalated as per the Bank of Canada inflation calculator.
G&A (General and Administrative) costs are based on AMC benchmark data.
Table 7: Total Life of Mine Operating Costs
Operating Costs (life of mine average)
Mining costs (underground)
$/t milled
175
Processing costs
$/t milled
38
G&A costs
$/t milled
37
Total site operating costs
$/t milled
250
Cash Costs
Cash costs (LOM)*
US$/oz
1,390
AISC (LOM)**
US$/oz
1,897
Notes
* Cash costs consist of mining costs, processing costs, mine-level general & administrative expenses and refining charges and royalties.
** AISC includes cash costs plus sustaining capital, closure cost and salvage value.
Initial and Sustaining Capital Costs
The total initial (pre-production) capital cost is estimated to be $59.2 million with an additional $46.7 million of capital during the first 2 years ramp-up period, prior to commercial production. Sustaining capital costs are estimated to be $367.2 million over the LOM (excluding $5.0 million of closure costs and salvage value).
The initial and sustaining capital costs were compiled using the following sources:
Mining capital costs were developed by AMC, based on the mine plan
Processing, infrastructure, project development and project in-directs were developed by AMC, and are inclusive of the underground development required to restart production, upgrade of the crushing circuit for the processing plant, camp expansion and other required infrastructure
Sustaining capital costs consist of mining costs including underground resource infill and delineation costs, development costs, tailings storage facility expansions, and water management structures
Table 8: Total Capital Costs
Description
Initial Capital
Cost
Pre-Commercial
Production*
Capital Cost
Total Sustaining
Cost
Total Capital Cost
(millions)
(millions)
(millions)
(millions)
Mining Development
$3.3
$29.5
$300.8
$333.5
Process Plant
$0.6
$1.5
$6.7
$8.8
Infrastructure On-site
$52.8
$6.4
$64.8
$123.9
Total Directs
$56.6
$37.4
$372.2
$466.2
Project in-directs including owner's cost and EPCM
$0.5
$1.9
$0.0
$2.4
Contingency
$2.0
$7.5
$0.0
$9.5
Total Capital Costs
$59.2
$46.7
$372.2
$478.1
Notes:
*Capital during ramp-up in years 1 and 2, prior to commercial production
LOM Cash Flow
The project is expected to generate $545 million undiscounted after-tax free cash flow (Base Case, see Figure 3.), and $1,314 million undiscounted after-tax free cash flow (at a gold price of US$4,800). Once operational, the mine is expected to support approximately 326 full-time positions, contributing to local employment and regional economic development.
Figure 3. LOM Undiscounted After-Tax Free Cash Flow
1911 Gold Opportunities
The PEA results offer consideration of several initiatives that may enhance the Project, including:
Processing Capacity & Efficiencies:
Existing Processing Capacity - Additional capacity currently exists within the processing plant to increase throughput to the mill with additional mine production.
Expand Current Processing Facility - Ability to expand the capacity beyond the current processing capabilities of the plant, by upgrading the secondary crushing circuit and increasing CIP retention time with additional tank capacity
Additional Resource Opportunities:
Immediate Resource Expansion – Significant potential exists as extensions of the mineral resources used for the PEA mine plan due to the lack of sufficient drilling density.
Additional Resource Potential (Mine Footprint) – Recent exploration discoveries within the True North mine footprint occur adjacent to mine infrastructure, with high potential to add resources, including SAM W, SAM SE, and Shore.
Potential Addition of New Resources from Regional Targets – Additional resources and resource potential exists within the Rice Lake Greenstone Belt, over a 90-km strike length within 1911 Gold's 100% owned ~62,000 hectares of ground. The Rice Lake Properties include the Ogama-Rockland gold deposit, all of which have road access, are within trucking distance to the mill, and are proximal to hydro-electric power.
Waste Reduction and Operational Efficiencies:
Integrated Underground Waste Management – Potential to utilize development waste for rock filling depleted stopes, significantly reducing the volume of waste hoisted to the surface. This strategy is expected to lower operating costs and maximize available shaft capacity for high-grade mill feed.
Sensor-based Ore Sorting – Opportunity to implement ore sorting technology to reject waste rock before it reaches the processing facility. This would increase the effective head grade, lower tonnages to be transported and processed, and reduce processing costs per ounce.
Advanced Backfill Solutions – Evaluation of tailings paste backfill underground to enhance ground stability and further minimize the surface environmental footprint.
Vertical Material Movement Optimization – Transitioning to internal ore passes and gravity-fed systems to move material to the shaft, reducing reliance on diesel-powered haulage and lowering ventilation requirements and related costs.
True North Gold Project Mineral Resource Estimate