"We are very pleased to say that we have not only been successful in achieving that goal, but that we have actually exceeded it with Val-d'Or East," he said.

Probe's PEA results yesterday outlined a 12.5-year mine producing an average annual 207,000oz at all-in sustaining costs of US$965/oz.

Initial capex was put at C$353 million, the after-tax NPV5 at $598 million, IRR at 32.8% and payback at 2.7 years, using a US$1,500/oz gold price.

"To have a project like this in Canada is remarkable, but to have a project like this in an established mining camp like Val d'Or, which still has tremendous exploration upside and growth potential is even more rare," Palmer said.

The PEA considered a mix of openpit and underground mining, gravity concentration, standard leaching with carbon-in-pulp technology and dry-stack tailings.

It also noted consideration to reroute fish-bearing streams and relocate two public roads.

Palmer said Probe had explored less than 15% of its property and would accelerate programmes to explore and increase confidence in the resource, where the measured and indicated component was doubled in June to 1.77 million ounces and inferred put at 2.2Moz. 

"We will continue advancing the project on all fronts as we build Val-d'Or East into one of the pre-eminent Canadian development stories," he said.

The company is among those looking increasingly attractive in terms of merger and acquisition opportunities.

Producer Eldorado Gold became a significant shareholder in July, acquiring 11.5% for C$23.7 million at $1.575 per share. 

Probe shares (TSXV: PRB) are trading near a one-year high. They closed down 2.4% yesterday to $2.07, valuing it at $270 million (US$213 million).

The company has about $29 million in cash and investments, according to a presentation this month.