Business
Positive scoping study at Cre
Positive scoping study at Cre.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n RNS Number : 6998Z Hochschild Mining PLC 19 January 2011 \n \n\n \n19 January 2011 \n \nPositive scoping study at 100% owned Crespo project in Peru\n \nHochschild Mining plc (\"Hochschild\" or the \"Company\") is pleased to announce positive results from a scoping study completed by an independent company, Ausenco, at its 100% owned Crespo project, located in the Company's existing operating cluster in southern Peru. \n \nHighlights \n \n· Open pit, heap leach operation within Hochschild's Southern Peruvian cluster\n· Total resources of 49.41 million silver equivalent ounces \n· Estimated average initial silver equivalent production of 2.3 million ounces per year with a resource life of 7.5 years\n· Potential to generate pre-tax non-discounted cashflow2 of $173.7 million and IRR of over 48% at current prices \n· Estimated total cash operating cost of $8.8 per silver equivalent ounce\n· Project now at pre-feasibility stage, with targeted completion in Q4 2011 \n \nThe scoping study is based on measured and indicated resources of 31.3 million silver equivalent ounces and estimates annual silver equivalent production of 2.3 million ounces starting from 2014. Crespo, which is expected to be an open pit deposit, is one of a number of properties acquired by the Company in 2008 as part of the Liam JV/Southwestern Resources land package and is the first of these to progress to pre-feasibility. \n \nIgnacio Bustamante, CEO of Hochschild Mining plc commented: \n\"We are delighted to announce positive scoping results at our 100% owned Crespo project, demonstrating our ongoing focus on value creation through organic growth. The results confirm that Crespo has the potential to become a profitable operation and enables us to leverage the existing skill base and infrastructure that we have established in southern Peru. We have extensive experience in bringing early stage projects into development and we will now progress Crespo through pre-feasibility which we will aim to complete in Q4 2011.\n \nIn addition to the resources incorporated in the scoping study, the Company believes that there is a ...