Thank you, Nick. Our final presenter for this session is George Sakalidis, the Managing Director of Magnetic Resources. George is an exploration geophysicist with over 35 years' industry experience. His career has included extensive gold, diamond, base metals, and mineral sands exploration. He has worked tirelessly building the gold assets of the company since February 2016 and has also been involved in numerous other significant mineral discoveries. Thanks, George.
Good morning, everyone. It's good to be back. Last year, we talked about a PFS, and this year, we're talking about a DFS, which has only been completed about a week and a half ago. We're in the Laverton Belt, the world-class belt, some very big mines, the Wallaby and Sunrise Dam mine. We think our mine is progressing towards that status, currently sitting around 2.3 million oz. We are in an area where there's plenty of infrastructure and plants, and we'll talk about that later. About a month and a half ago, we put out a significant resource upgrade, our Lady Julie Gold Project, which is the project which has gone into the economic study, 35.7 million tons at 1.9 grams per ton for 2.1 million oz.
The main constituent of the project is the Lady Julie North Project, which is 31.2 million tons at 1.9 grams per ton for 1.94 million oz, and that has grown by 400,000 oz in the last six months. It's still open, and we're still drilling it. Pretty sensational deposit, and it keeps surprising. The economics we released a week and a half ago, pretax NPV of $970 million, internal rate of return of 45%, consuming a $4,000 gold price that's currently 25% below spot. Looking at full production of 140,000 oz per year over a nine-year mine life, very strong economics, EBITDA $2.2 billion, low AIS` cost at $1,900. Some of the things we're advancing, obviously, a mining lease was granted about a week ago. Two more mining leases will be granted shortly with the access approval, and that will lead to moving this voluntarily into production.
Currently, very strong interest from both brokers and banks to move this into production, and we've commenced part of that process by hiring a very experienced COO. He loves our project and wants to be involved, and he will be there building the plant to move it into production. These are some of the highlighted parts of the feasibility. You can see a million-ounce reserve. That million-ounce reserve will be eclipsed, and we'll explain why. Basically, feasibility started about six months ago, and in that period, we've added 275,000 oz in the underground, but it isn't part of the feasibility, so clearly, the reserve will go up. Full production of 140,000 oz per year, and there's a table we'll run through that. $375 million CapEx. It's owner-operated, so there's plenty of items there that we can look at in more detail.
A low AIS cost, $1,900, and we've already spoken about the NPV. This is quite an interesting chart. It gives you the history. The grey are the other smaller deposits. The red and pink is the Lady Julie North 4 deposit. That was 0.1 million oz three years ago. It's currently 1.94 million oz. Now, we elected to grow this organically. We're not interested in picking up other projects, and clearly, the concept that we had was correct, and it's proven itself. You can see th e reserve table, and the reserve of a million oz will grow, as we described earlier. Again, this is a bit more information on some of the feasibility study. You can see 2.75 million ton per annum plant. It's 2.2 million ton per annum for the open cut, but there's an additional 500,000 million ton per annum coming from the underground. It's a combined open pit and underground, which we didn't have in our PFS.
Clearly, we had to do that because the underground was very significant, and there'll be a chart which will show exactly what we've done in that period. The payback is our 10 quarters. In terms of all mined and processed, you can see our running yearly total starts off modestly, but then it picks up pretty much. You can see the 2.7 million tons per annum processed. The bottom chart gives you an idea on the average grade for those years, and you can see some of the years we're producing well and truly over 150,000 oz. The tail in the production right at the end, I believe, will not be there, and in fact, I think it'll go to 9, potentially 11 years, and that's based on some of the results that we're picking up already.
Economic highlights, you can see the net cash flow, $1.75 million over the life of the nine-year operation. Pretty good numbers there, but again, based at $4,000. Project benchmarking, we've made some comparisons with other companies. Basically, trying to highlight that, you know, we have, I guess, a lot of gold produced per year, up to 140,000 there in that area. Total gold around a million oz, but the grade is quite high in comparative to some of our peers. Obviously, our peers have other good points as well, but this is our comparison. Sensitivities, obviously, gold price. You can see currently it's $970 million in the base case. It jumps up by an increase if you increase the gold price by $400 to $4,400. It goes up to $1,200. If you increase it to close to the spot, you're at $1.69 billion.
This thing makes a lot of money, and obviously, at spot, makes even more. It's sensitive to total gold or the grade, and also sensitive to recovery. They're the main sensitivities in this graph. Okay, so the capital expenditure, we've broken it up, and you can see the processing plant in red, $139 million. Mobile fleet, purchase of these big excavators, you're looking at $90 million. earth works, $33 million. There is some flexibility. A lot of these things were included in the CapEx. Some of them can move to OpEx, but this is what we released. In terms of the OpEx, power supply development and the operation of the permanent camp will be going into the OpEx, but this is where we are today. You can see the layout of plant at Lady Julie North 4 deposit on the top with the ROM and processing plant trending east-west.
The processing plant's 2.75 million tons per annum. We've added a flotation and fine grind circuit. That's there because we noted that with that addition, the average recovery has increased by 5% from around 87% to 88% to 92%, and it's definitely worthwhile to have that circuit. In terms of power, combined gas, solar with that supply around 20 MW- 22 MW. Water, we've had quite a bit of success with the water, so we believe parts of the Tetaboxia have quite a bit of water, and we've had excellent flow. We need to do a little bit more work, but quite confident that this will be a good area. In terms of workforce, we're talking about 300 people, FIFO, but located at Laverton. We are probably the first group that are proposing that, and I guess the locals are very comfortable. We're developing relationships with them as well.
A lot of people have been involved in this study. Blue Cap did a fantastic job putting everything together, but you can see there's a lot of parts that went into this as most feasibility studies would have. In the open pit operation, there's five stages. The open pit takes 81% of the ore, and the remainder comes from the underground. You're looking at 200-ton and 120-ton excavators and 150-ton dump trucks. Strip ratio is 12 to 1. Lady Julie North 4 is the principal deposit, and you can see the big open cut. It's 1 km long by 800 m wide and 350 m deep. The bench heights are 5 m in the ore and 10 m in the waste.
This is the underground parts of the study that was done, contemplating 550,000 tons from the northern lode, but this study was completed before the most northern lode was drilled out, and we'll see that in the following slide. The resource here, 4.3 million tons at 2.59 grams per ton, but clearly, that's just for the second lode. In the following picture, you'll see that the mining is a long-haul sloping method. The third load is the one on the right-hand side, and you can see the outline of the red. None of that went into the feasibility study, so there's 280,000 oz sitting in that. This deposit is just sitting on this diagram, which is a, I guess, it's a long section, and we're looking straight down on the plane of the main load.
It's a ground thickness map, true thickness, and it gives us a fantastic way of understanding the total gold. At the same time, it helps us in understanding where we should drill next. We're currently drilling hole 84, sitting below the new chute on the northern end, and we've also drilled hole 81 sitting over here. It looks like there's another chute developing, but it's early days to understand the potential extensions of that. In detail, a lot of geologists like to hear this sort of thing. The southern end is the breadsharp pyrite alteration, very strongly altered, unusual rock type. The two northern chutes are altered ultramafic, which change from dark black to gray when they're silicified, and then they have a bright green alteration when they end up being altered into the ferro-silicic alteration.
We do have very thick zones, commonly between 10 m and 20 m, often up to 50 m. Fantastic thick zones, very high ground meters, 150+ m in those central core zones. The underground sitting in there is about 300 m in length and very consistent thick zones stretching all the way below the open pit. Some of the older people like to hear about ounces per vertical meter, 4,200 oz/m from 30 m to 400 m and 5,100 oz/m from 100 m to 300 m. Very nice high numbers here. Timeline, we've ticked everything off. It took a while, but we've got a native title agreement signed, which led to the mining lease approval. There are two more mining leases, but they will be granted because the access agreement has been signed. Ultimately, let's say in a few weeks, we'll have three mining leases approved, which is a total package for that project.
Right now, we're looking to proceed to production, and you can see there's a bit of a timeline there starting around this time and opportunities to move this into production. The TE timeline for production, looking at the middle of 2027. ESG, we've certainly been thinking and doing things. Solar hybrid power is one of those components. Definitely looking at using local groups and moving the, I guess, the camp in Laverton, which we're probably the first group to have done it. Definitely trying to do the right thing there. One of our small mines called Lady Julie Central will be using that as a tailings dam as well. I'll come back to that. Company overview, 268 million shares, market cap around $400 million.
We did list in 2007, so the market that the shares outstanding are quite low, and I'm kind of proud of what I've done with this company on that basis. Big holdings, the top one owned 45%, the top 20 owned 71%. We do have some institutions and some gold funds, but not that many. Nevertheless, they're always welcome to be involved with us in the future. Gold price performance has been reasonable, obviously not as strong as some of the producers, nevertheless, it's moving in the right direction and getting closer to production, I guess. The intriguing part is that we do have two data rooms, one for eight producers and one for the banks.
We're getting to the point where we're moving closer and closer to production, and given the interest, over the next few weeks, this company will be making that decision, and I guess we won't be waiting to hear back from the people in the other data rooms. The bankers' interest is very, very strong, and so are the brokers. We'll be making those decisions shortly. The board has already approved moving into production. That's been done. In summary, we have a pretty high-grade gold project, excellent economics. We are in a world-class build. We still have extensions at depth. I didn't expect that, but still going. Next to multiple production hubs, obviously, you know, our competition have production hubs next door, and we've already mentioned the decision to proceed with all the interest that we have to do that. Thanks very much.