Dateline Resources Ltd. has confirmed that the historic Colosseum gold and rare earth project in San Bernadino County, California can be restarted with strong economics backing the project.
The company’s bankable feasibility study (BFS) shows that the project demonstrates a robust gold development, generating significant margins.
The study forecasts an undiscounted pre-tax free cash flow of US$1.08 billion based on a gold price of US$4,200 per ounce. With gold currently trading at spot prices near US$4,700, that figure surges to US$1.357 billion.
The BFS highlights an internal rate of return (IRR) of 49.5 per cent, which jumps to nearly 60 per cent at spot prices, marking the project as a standout performer in the current gold sector.
Start-up capital is estimated at a manageable US$249 million, with a modest 10.4-year mine life ahead.
Dateline Managing Director Stephen Baghdadi said: “Since acquiring Colosseum in 2021, we have recognised the significant potential of the project.
“The near vertical nature of mineralisation associated with the breccia pipes demonstrates excellent continuity that continues with depth.
“Since the original Scoping Study was completed in October 2024, we have continued to see strength in the gold sector, with the project forecast to generate operating margins of greater than US$2,500 per ounce.”
The production strategy is front-loaded, with all 20.6 million tonnes of ore expected to be mined within the first six years. During this peak period, the mine will produce an average of 75,000 ounces of gold annually, before transitioning to processing stockpiled material for the remaining four years of the mine’s life.
Logistically, the project is well-positioned, located just 88 kilometres from Las Vegas. The restart will leverage existing infrastructure, including a two-million-tonne-per-annum processing plant site and reactivated water bores.
Beyond the initial open-pit reserve, Dateline has identified significant upside, including 55,000 ounces of inferred resources and underground potential that remains open at depth, suggesting the mine’s life could extend well beyond the current decade-long forecast.
“With the BFS complete and the front-end engineering studies (FEED) well underway, our engagement with project financiers is advancing as we look to secure the funding required to commence production as soon as possible,” Baghdadi said.