DGAP-News: ASTUR GOLD REPORTS POSITIVE PRELIMINARY ECONOMIC ASSESSMENT FOR SALAVE GOLD PROJECT
ID: 33224
(firmenpresse) - DGAP-News: Astur Gold Corp. / Key word(s): Miscellaneous
ASTUR GOLD REPORTS POSITIVE PRELIMINARY ECONOMIC ASSESSMENT FOR SALAVE
GOLD PROJECT
16.02.2011 / 15:15
---------------------------------------------------------------------
PRESS RELEASE
ASTUR GOLD CORPORATION
300 - 1055 West Hastings Street
Vancouver, BC, V6E 2E9 Canada
Tel: (604) 694-1600 Fax: (604) 694-1663
ASTUR GOLD REPORTS POSITIVE PRELIMINARY ECONOMIC ASSESSMENT FOR SALAVE GOLD
PROJECT
Highlights:
- Pre-tax Net Present Value (NPV) ranging from of US$374,000,000 to
US$576,000,000 using a base case gold price of US$1,100 per ounce, and
a 5% discount rate.
- Internal Rate of Return (IRR) ranging from 34% to 54%.
- Annual production of 107,500 oz to 133,300 oz of gold per year at a
cash cost of US$419/oz to US$529/oz for POX and US$435/oz to US$547/oz
for BOX.
- Throughput rate of 1.1 million tonnes per year.
- Pre-production capital expenditure payback period ranging 2.0 to 3.1
years.
- Total net incomes ranging from US$663,000,000 to
US$1,195,000,000 at US$1,100/oz gold price.
Vancouver, BC - February 16, 2011 : Astur Gold Corp. (TSX-V: AST,
Frankfurt: CDC) ('Astur Gold' or the 'Company') is pleased to announce
positive Preliminary Economic Assessment (the 'Study') results for its 100%
owned Salave Gold Project in Asturias, Spain. The Study was compiled by
Golder Associates of Spain and the results strongly demonstrate the
technical and economic viability of the Project.
The Study examines three different mining scenarios. An open pit only
scenario ('OP'), an underground only scenario ('UG'), and a combined open
pit and underground scenario ('OP+UG'). In addition, the Study combines the
mining scenarios with two processing options: a Bio Oxidation scenario
('BOX') and a Pressure Oxidation scenario ('POX').
TABLE 1: SUMMARY OF OUTCOMES FOR DIFFERENT SCENARIOS
SCENA- MINING OXIDA- LOM NET INCOME PAY BACK NPV IRRCary Pinkowski, CEO and Director of Astur Gold commented: 'We are excited
RIO TION (5%)
(years) (US$M) (years) (US$M) (%)
Large
1 OP POX 18 1195 3.1 576 34%
Large
2 OP BOX 18 1115 3.0 548 36%
3 UG POX 10 714 2.2 391 46%
4 UG BOX 10 663 2.0 374 53%
COMBIN
5 ED POX 14 902 2.1 486 47%
COMBIN
6 ED BOX 14 844 2.0 464 54%
with the results of our Preliminary Economic Assessment. Clearly, the
project will generate robust profitability from any of the proposed mining
options. We evaluated multiple production and processing scenarios, giving
us a wide range of information from which to select the optimal mine plan
for the Company, the Community of Tapia, and the Government of Asturias.
Astur Gold is advancing Salave towards production as expeditiously as
possible for the benefit of all stakeholders.'
Mining Scenarios
Scenarios 1&2 - Large open pit
- A large initial open pit ('OP') with a minor underground ('UG')
component at the end of the mine life will produce 21Mt at an average
grade of 2.87g/t Au over the 18 year life of mine ('LOM') (17.6 Mt
Measured&Indicated at 2.92 g/t Au). This method recovers the largest
portion of the orebody.
- These scenarios will have a pre-tax NPV (at a 5% discount rate) of $576
million to $548 million and a mine life of 18 years for the POX and BOX
processing methods respectively. The Internal Rate of Return ('IRR')
for these same scenarios will range between 34% and 36%.
- Average annual gold production will be 107,500 oz. Average annual cash
costs will be US$419/oz for POX and US$435/oz for BOX.
- Results from Scenarios 1 and 2 are summarized below in Table 2:
TABLE 2: SCENARIOS 1&2 - LARGE OPEN PIT
Mine method OPEN PIT + UGScenarios 3&4 - Underground only
LOM OP Strip ratio 1.74 m3/t
LOM OP average grade 2.81g/t
LOM UG average grade 4.10 g/t
Life of Mine (LOM) 18 years
Cut - Off OP 0.74 g/t
Ore Tonnes 20,953 kt
LOM average throughput 1.1 Mtpa
Gold Price 1,100 US$/oz
- The underground only option will produce 9.8Mt at an average grade of
4.23 g/t Au (8.3 Mt Measured&Indicated at 4.31 g/t Au) over the 10
year mine life. This option provides the best payback at 2.0 to 2.2
years dependent on the processing method employed.
- These scenarios have a pre-tax NPV (at a 5% discount rate) of US$391
million and US$374 million and IRR of 46% and 53% for the POX and BOX
processing methods respectively.
- Scenario 3 and 4 focuses on the extraction of a smaller tonnage, higher
grade portion of the orebody. This method would result in the least
amount of surface disturbance and mining facility footprint.
- Average annual gold production will be 133,300 oz. Average annual cash
costs will be $529/oz for POX and $547/oz for BOX.
- Results from Scenarios 3 and 4 are summarized below in Table 3:
TABLE 3: SCENARIOS 3&4 - UNDERGROUND
Mine method UGScenarios 5&6 - Combined smaller open pit and underground
LOM average grade 4.23 g/t
Life of Mine (LOM) 10 years
Cut - Off 2.07 g/t
Ore Tonnes 9,801kt
LOM average throughput 1.0 Mtpa
Gold Price 1,100 US$/oz
- Initial underground mining will operate concurrently with a small open
pit 400 meters in diameter. This mining approach would target higher
grade ore at depth and a small open pit operation to recover near
surface lower grade ore. This method would increase the total ore
recovered than mining scenarios 3 and 4, extend the mine life, and also
minimize the pit size and surface disturbance proposed with mining
scenarios 1 and 2.
- The pre-tax NPV (at a 5% discount rate) will be between $486 million
and $464 million with an IRR of 47% and 54% over a 14 year mine life
for the POX and BOX processing options respectively.
- The combined mining method would produce 542,575 oz Au from open pit
and 1,006,093 oz Au from the underground operation.
- Average annual gold production will be 106,500 oz. Average annual cash
costs will be $454/oz for POX and $467/oz for BOX.
- The results of Scenario 5 and 6 are summarized below in Table 4:
TABLE 4: SCENARIOS 5&6 - COMBINED MINING METHOD
Mine method UG +OPOther parameters used to evaluate the feasibility potential of the deposits
LOM OP average grade 2.55 g/t
LOM UG average grade 4.44 g/t
Life of Mine (LOM) 14 years
Cut -Off OP 0.74 g/t
Ore Tonnes 13,682 kt
LOM average throughput 1.0 Mtpa
Gold Price 1,100 US$/oz
are summarized in Table 5:
TABLE 5: INPUT PARAMETERS FOR PRELIMINARY ECONOMIC ASSESSMENT
Gold Price US$1100/ozProcessing Options
UG mining Recovery 90%
Flotation Mass Recovery 6.2%
Flotation Recovery 96.5%
Oxidizing weight Factor 130%
POX + CIL Recovery 99.0%
POX Overall Plant Recovery 95.5%
POX + CIL Recovery 94.9%
BOX Overall Plant Recovery 91.6%
OP Ore Mining Cost 1.58 EUR/t
OP Waste Mining Cost 1.01 EUR/t
UG Mining Cost 28.65 EUR/t
Processing Cost POX 18.08 EUR/t
Processing Cost BOX 17.67 EUR/t
Sustaining Capital 0.25%
Capital Contingency 12.0%
Capital Cost Factor 1.0
Operating Cost Factor 1.0
Sales Cost 0.4%
Refining Costs 0.4%
Grants Received 10%
Discount Factor 5%
Once mined, the ore responds well to flotation with gold recoveries in
excess of 96%. BOX achieved maximum sulphide oxidation levels of between
96.5% and 99.6% on the individual and blended samples. Gold extraction
after 24 hours on the oxidized residues varied between 91.9% and 97.8%.
Cyanide consumptions were high ranging from 15.6 kg/t to 25.4 kg/t, however
this reflected a test work objective of maximizing gold dissolution rather
than optimizing cyanide consumption. Lime consumption was also high for
BOX, ranging between 35.8 kg/t and 110 kg/t. POX achieved maximum sulphide
oxidation levels of between 98.4% and 99.8% on the individual and blended
concentrate samples. Gold extraction on the oxidized residues was very high
at 98.6% to 99.1% after 24 hours, with low cyanide consumption of
approximately 1 kg/t.
Capital Costs
Capital costs have been estimated for the six scenarios. Initial
development capital expenditures range from $124.8 million to $153.7
million, as shown in Table 6. It is assumed that the mining fleet will be a
contract operation in all scenarios. Sustaining capital over the life of
the project is estimated to range from $3.9 million to $6.6 million.
TABLE 6: DEVELOPMENT CAPITAL COSTS ($US millions)
Scenario Scenario Scenario Scenario Scenario ScenarioEconomics
1 2 3 4 5 6
Mining 11,897 11,897 8,622 8,622 9,408 9,408
Process 79,121 61,573 79,121 61,573 79,121 61,573
Tailings 11,790 11,790 12,052 12,052 9,170 9,170
Infrastructure 10,912 13,696 10,912 13,696 10,912 13,696
EPCM 16,076 12,501 16,076 12,501 16,076 12,501
Owners Cost&Land 7,336 7,336 4,192 4,192 4,978 4,978
Contingency 16,606 14,295 15,916 12,203 15,809 13,521
Total Development
CAPEX 153,739 133,089 146,892 124,839 145,476 124,847
The economics of the project have been evaluated at a gold price of
US$1,100/oz and all scenarios indicate a robust return for the project. The
economics presented in Table 7 are on a pre-tax basis and are presented for
the range of mining and processing options investigated.
Using a base case gold price of $1,100 per ounce, the Study shows:
- Undiscounted net pre-tax incomes ranging from $663 million to $1,195
million.
- Pre-tax Net Present Value (NPV) ranging from of $374 million to $576
million using a 5% discount rate.
- Internal Rate of Return (IRR) ranging from 34% to 54%.
- Total gold production ranges from 1.27 to 1.85 million ounces under
different scenarios.
- The final life of mine (LOM) tonnage, grade and strip ratios used to
generate the various economic outcomes varied depending on the various
mining options considered.
- The corporate tax rate in Spain is 30% and there is no tax royalty for
gold revenues.
- All dollar amounts presented in this press release are expressed in
1stquarter 2011 US dollars.
- An exchange rate of 0.76 Euro to US dollars was used where costs were
based on Euro expenditures.
The project NPV has been examined at various gold prices, as summarized in
Table 7.
TABLE 7: NPV SENSITIVITY TO GOLD PRICE ($US millions)
NPV (0%) Scenario Scenario Scenario Scenario Scenario Scenario
1 2 3 4 5 6
1000 871 816 453 427 621 588
1100 1,051 989 579 547 767 727
1400 1,594 1,510 955 908 1,202 1,144
Upside
Case
NPV (5%) Scenario Scenario Scenario Scenario Scenario ScenarioResource Base
1 2 3 4 5 6
1000 467 443 300 285 385 367
1100 576 548 391 374 486 464
1400 906 863 667 638 787 753
Upside
Case
The Study was based on a resource base of 2,155,000 tonnes grading 3.88 g/t
Au (Measured), 15,790,000 tonnes grading 2.79 g/t Au (Indicated) and an
additional 3,770,000 tonnes grading 2.80 g/t Au (Inferred). This resource
estimate was completed in February 2010 by Scott Wilson RPA of Toronto (See
Astur Gold Corp Press Releases - April 21, 2010).
TABLE 8: MINERAL RESOURCE STATEMENT FOR THE SALAVE GOLD DEPOSIT
Category Tonnes Au Grade g/t Contained Au (Oz)- Open pit Mineral Resources are estimated at the pit discard cut-off
Measured 2,155,000 3.88 268,000
Indicated 15,790,000 2.79 1,415,000
Measured&Indicated 17,945,000 2.92 1,683,000
Inferred 2,600,000 1.94 160,000
Underground (Inferred) 1,170,000 4.70 178,000
grade of 0.7 g/t Au.
- Underground resources are estimated at the cut-off grade of 2.5 g/t Au
Au and a minimum 4m vertical thickness of mineralization
- Average density of mineralized rock is 2.74 t/m3 for the Salave gold
deposit
- Resources taken from NI 43-101 report, 'Technical Report on Salave Gold
Deposit, Spain', by Scott Wilson RPA, February 25, 2010.
Note: Mineral resources that are not mineral reserves do not have
demonstrated economic viability. The Scoping Study includes inferred
mineral resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them to be
categorized as mineral reserves, and there is no certainty that the
preliminary assessment will be realized.
Summary of Salave Gold Deposit Geology
The Salave gold deposit includes five Mineral Concessions covering a total
area of 433 ha. TheSalave gold deposit is hosted mainly by the Salave
granodiorite, in close proximity to the contact with the Los Cabos
Formation. The deposit contains gold mineralization along numerous north to
northwest trending and gently west dipping irregular lenses. In certain
areas, mineralization is affected by a set of north trending structures
that define a complex network, within a northeast trending shear zone. Gold
mineralization is also present within the adjacent metasedimentary rocks of
the Los Cabos Formation.
NI 43-101 Report
The NI 43-101 Technical Report documenting these results will be filed on
www.sedar.com and on the Company's corporate website www.asturgold.com
within 45 days of the news release.
Qualified Person
The Study, including a new mineral resource estimate for a proposed
underground operation at the Salave Gold project has been prepared by
Golder Associates Global Ibérica S.L.U. (Golder), Under the direction if
its Managing Director Dr. Arturo Gutierrez del Olmo, European Engineer, and
under the direct supervision of Sergio Tenorio, European Geologist,
Qualified Person (QP) under National Instrument 43-101. Utilizing the
underground mining parameters and updated economic factors defined in the
Study, Golder has revised and reported an underground resource based on the
report 'Technical Report on the Salave Gold Deposit, Spain', dated February
25, 2010 and authored by Hrayr Agnerian, of Scott Wilson RPA Inc. of
Toronto, Canada (reference Astur Gold Press Release April 21, 2010). For
the purpose of the re-evaluation, Golder has considered the geostatistics
and block model generated for the preparation of the aforementioned
Technical Report. Golder relies on, but does not guarantee, the validity of
the block model. The Q.P., Sergio Tenorio has reviewed and approved the
contents of this release.
ABOUT GOLDER ASSOCIATES
Golder Associates is an employee-owned company with international expertise
in ground engineering, earth and environmental services. Its areas of
expertise include oil and gas, mining, manufacturing, power, and
transportation. Golder Associates has over 7,000 employees, operating from
160 offices located throughout Europe, Africa, Asia, Australasia, North
America, and South America.
ABOUT ASTUR GOLD
The Company is developing its 100% owned Salave Gold Project in northern
Spain. Salave is one of the largest undeveloped gold deposits in Western
Europe. The property has a NI 43-101 compliant mineral resource estimate
containing 1,683,000 oz of gold in the Measured&Indicated category
(2,155,000 tonnes grading 3.88 g/t Au Measured and 15,790,000 tonnes
grading 2.79 g/t Au Indicated) with an additional 338,000 oz of gold in the
Inferred category (3,770,000 tonnes grading 2.8 g/t Au). Salave is subject
to NI 43-101 report, 'Technical Report on Salave Gold Deposit, Spain',
dated March 5, 2010 available on SEDAR.
There is excellent exploration potential at Salave, with four of the
principal high grade zones of mineralization open at depth. Additional
exploration areas to the west have also yet to be tested. Previous
metallurgical tests indicate gold recoveries in the order of 90% are
possible. The region boasts excellent infrastructure and a history of
mining that will help support future mine development. Astur Gold is
advancing Salave towards production and cultivating an enduring partnership
with the people of Asturias in developing economic prosperity for the
region.
ON BEHALF OF THE BOARD
Signed 'Cary Pinkowski'
Cary Pinkowski, Chief Executive Officer and Director
FOR FURTHER INFORMATION PLEASE CONTACT:
Vadim Dubchak
#300-1055 West Hastings Street,
Vancouver, B.C., V6E 2E9
Tel: 604-694-1600
Fax: 604-694-1663
info(at)asturgold.com
www.asturgold.com
Forward Looking and other Cautionary Information
This release includes certain statements that may be deemed
'forward-looking statements'. All statements in this release, other than
statements of historical facts, that address estimated resource quantities,
grades and contained metals, possible future mining, exploration and
development activities, are forward-looking statements. In particular,
Preliminary Economic Assessments are preliminary in nature, including
Inferred Mineral Resources that are considered too speculative geologically
to have the economic considerations applied to them that would enable them
to be categorized as Mineral Reserves, and there is no certainty that the
findings of the Preliminary Assessment will be realized. Although the
Company believes the expectations expressed in the Preliminary Economic
Assessment and other forward-looking statements are based on reasonable
assumptions, such statements should not be in any way construed as
guarantees of future performance and actual results or developments may
differ materially from those in the forward looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include market prices for metals, the
conclusions of detailed feasibility and technical analyses, lower than
expected grades and quantities of resources, mining rates and recovery
rates and the lack of availability of necessary capital, which may not be
available to the Company on terms acceptable to it or at all. The Company
is subject to the specific risks inherent in the mining business as well as
general economic and business conditions. For more information on the
Company, Investors should review the Company's annual Form 20-F filing with
the United States Securities Commission and its home jurisdiction filings
that are available at www.sedar.com.
Information Concerning Estimates of Measured, Indicated and Inferred
Resources This news release also uses the terms 'indicated resources' and
'inferred resources'. Astur Gold Corp. advises investors that although
these terms are recognized and required by Canadian regulations (under
National Instrument 43-101 Standards of Disclosure for Mineral Projects),
the U.S. Securities and Exchange Commission does not recognize them.
Investors are cautioned not to assume that any part or all of the mineral
deposits in these categories will ever be converted into reserves. In
addition, 'inferred resources' have a great amount of uncertainty as to
their existence, and economic and legal feasibility. It cannot be assumed
that all or any part of an Inferred Mineral Resource will ever be upgraded
to a higher category. Under Canadian rules, estimates of Inferred Mineral
Resources may not form the basis of feasibility or pre-feasibility studies,
or economic studies except for Preliminary Assessment as defined under
43-101. Investors are cautioned not to assume that part or all of an
inferred resource exists, or is economically or legally mineable.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. Mineral
resources that are not mineral reserves do not have demonstrated economic
viability.
End of Corporate News
---------------------------------------------------------------------
16.02.2011 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
112423 16.02.2011Unternehmensinformation / Kurzprofil:
Datum: 16.02.2011 - 15:15 Uhr
Sprache: Deutsch
News-ID 33224
Anzahl Zeichen: 0
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 321 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: ASTUR GOLD REPORTS POSITIVE PRELIMINARY ECONOMIC ASSESSMENT FOR SALAVE GOLD PROJECT"
steht unter der journalistisch-redaktionellen Verantwortung von
Astur Gold Corp. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
