Business
Azuca scoping study update
Azuca scoping study update.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n RNS Number : 5780T Hochschild Mining PLC 30 September 2010 \n \n\n \n \n30 September 2010 \n \nPositive scoping study at 100% owned Azuca project in Peru\nMoving forward with increased drilling and prefeasibility study\n \n· Total global resources of 60.8 million silver equivalent ounces \n· Estimated initial silver equivalent production of 3.5 million ounces per year on average, representing more than 13% of Hochschild's 2010 attributable production \n· Estimated total cash operating cost of $71 per tonne\n· Project now at pre-feasibility stage, with targeted completion in H2 2011\n· Significant geological potential and ongoing intensive drilling campaign to develop additional resources \n \nHochschild Mining plc (\"Hochschild\") is pleased to announce positive results from a scoping study completed by an independent party at its 100% owned Azuca project, located in the Company's existing operating cluster in southern Peru. Results of the scoping study indicate that at base case gold and silver prices of $1,000/oz and $17/oz respectively, the project could return a cumulative total pre-tax cash flow1 of approximately $107 million and 21% IRR. Using spot prices for gold and silver of $1,300/oz and $21.9/oz respectively, the project could return a cumulative total pre-tax cash flow2 of approximately $247 million and 46% IRR. The study assumes initial plant throughput of 750 tonnes per day with engineering designed to easily accommodate future capacity increases. \n \nAzuca has reached global resources of 60.8 million silver equivalent ounces and is now in pre-feasibility stage with targeted completion in H2 2011. The Company is undertaking an intensive drilling campaign to develop additional resources with a view to continue extending the scale and profitability of the project. \n \nIgnacio Bustamante, CEO of Hochschild Mining plc commented: \n \n\"We are pleased to announce positive results from the Azuca scoping study which is an important step towards establishing an additional producing asset in our southern Peru cluster. The results of the study confirm that Azuca has the potential to become a profitable mine and we wi...