Business
Hochschild signs JV agreement
Hochschild signs JV agreement.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n RNS Number : 6301Y Hochschild Mining PLC 29 December 2010 \n\n \n[29 December 2010]\n \n Hochschild signs JV agreement for Inmaculada property\n \nFurther to the announcement on 13 October 2010, Hochschild Mining plc (\"Hochschild\" or the \"Company\") is pleased to confirm the signing of the definitive joint venture agreement (the \"JV Agreement\") with its partner, International Minerals Corporation (\"IMZ\") to develop the Inmaculada project. Based on the terms of the agreement, Hochschild now holds a 60% interest in the Inmaculada property in southern Peru and becomes the operator. \nInmaculada is a 20,000 hectare gold-silver project located 25km south of the Pallancata silver mineand is one of the Company's key advanced projects. An independent scoping study, published by IMZ in September 2010, estimated average annual total silver equivalent production of 11 million ounces from the project's Angela vein. The project currently reports total resources of 115 million silver equivalent ounces (1.9 million gold equivalent ounces) and Hochschild is now fast tracking the project with the aim of completing feasibility by the end of 2011, moving to production in 2014. \nResults of the scoping study indicate that at base case gold and silver price assumptions of $1,000/oz and $17/oz respectively, the project could return a cumulative total pre-tax cash flow[1] of $660 million, with a pre-tax internal rate of return (\"IRR\") of 41%. Using prices of $1,400/oz and $24/oz for gold and silver respectively, the project could return a cumulative total pre-tax cash flow[2] of approximately $1,148 million, equivalent to $787 million at a 5% discount rate and $548 million at a 10% discount rate, with an IRR for the project of approximately 63%. \n Ignacio Bustamante, CEO of Hochschild Mining said:\n\"We are delighted to announce the closing of the joint venture agreement with IMZ, who have done a fantastic job in bringing the...