Capstone Mining Reports Positive Feasibility Study Results for Santo Domingo Project in Chile

About this update from Capstone Copper Corp.

[{"type":"text","content":"\n\n\n(All amounts in US$ unless otherwise specified and reflect 100% of the\n project)\n\n\nVANCOUVER, June 4, 2014 /CNW/ - Capstone Mining Corp. (\"Capstone\") (TSX:\n CS) today announced the results of the Feasibility Study (\"FS\") for its\n Santo Domingo Iron Oxide-Copper-Gold (\"IOCG\") project (\"Santo Domingo\"\n or the \"Project\") in Region III, Chile. The Project is owned 70% by\n Capstone and 30% by Korea Resources Corporation (\"KORES\").\n\n\n\"This Feasibility Study confirms the value of the Santo Domingo\n Project,\" said Darren Pylot, President and CEO of Capstone. \"This\n positive study shows an unlevered Internal Rate of Return of 17.9%\n (27.3% assuming $1 billion of project debt or 60% leverage) at an\n initial capital cost of $1.7 billion, consistent with our previously\n issued capital guidance.\"\n\n\n\"We believe the Santo Domingo Project provides an attractive opportunity\n for Capstone in a jurisdiction and local community that continues to\n demonstrate strong support for the project. We will proceed in a very\n measured and disciplined manner with a number of steps in our\n stage-gate process to be completed prior to large capital expenditure\n commitments. The positive Feasibility Study, combined with the initial\n regulatory response to the Environmental Impact Assessment (\"EIA\") that\n was filed in October 2013, gives us the confidence to advance the\n project to the next stage-gate decision point in early 2015. We believe\n this is a low-risk and relatively low-cost approach to increase the\n value and maintain the optionality of the project,\" continued Mr.\n Pylot.\n\n\n\"Important objectives for the next stage of the project development\n include execution of a power purchase agreement, approval of the\n Environmental Impact Assessment and a continued demonstrated social\n license for the project. We will also assess an optimal financing\n structure for the project prior to reaching the next decision point in\n 2015.\"\n\n\nHighlights\n\n\n\nCopper production will average 248 million pounds in the first five\n years of full production. For the life of mine (\"LOM\"), average annual\n copper production is 128 million pounds with 4.2 million tonnes of iron\n concentrate and 16,000 ounces of gold.\n\n\nAfter-tax net present value (\"NPV\"), discounted at 8%, of $797 million.\n\n\nUnlevered aft...

More updates from Capstone Copper Corp.