Business
Majestic Gold Corporate Update
May 9, 2011 (Baystreet.ca) -- Vancouver, British Columbia, March 11, 2011. Further to its ne...
About this update from Majestic Gold Corp.
[{"type":"text","content":"\nMajestic Gold Corporate Update\n\n May 9, 2011 (Baystreet.ca) -- Vancouver, British Columbia, March 11, 2011. Further to its news release of January 20,2001, Majestic Gold Corp. (TSX.V:MJS, Frankfurt:P5E) is pleased to announce that thePreliminary Assessment report (“PA” or “Preliminary Assessment”) prepared by Wardrop,a Tetra Tech Company, (“Wardrop”) for the Songjiagou Gold Project located in ShandongProvince, People’s Republic of China is now posted on SEDAR.Key elements of the report are as follows:Economic Parameters• Net Present Value of US$525 million using a 10% discount rate• Internal Rate of Return of 78.6%• Payback in 1.4 years• Total gold production of 2.324 million ounces (average 105,645 oz/yr) for lifeof-mine• Life-of-Mine strip ratio 1.87 : 1 (waste to mineral inventory)• Mine-Life of 22 years• US$973/oz for the base case gold price for this study.RecommendationsEXPLORATIONWardrop recommends two phases of exploration designed to upgrade and expand theexisting resource.• Phase I will focus on increasing the level of confidence in the shallower portion ofthe exiting resource. The all-inclusive cost of this phase is estimated to be $1million.• Phase II is the extension of the Phase I program. The objectives of this program are(a) to increase confidence in the deeper mineralization, and (b) to identify additionalresources both at depth and along strike. The all-inclusive cost of the secondprogram is estimated to be $3.5 million.ENGINEERINGWardrop recommends further engineering studies, including:Mining• Studies to formulate concrete decisions on village relocations• Studies to obtain higher resolution topographic data• A trade-off study to optimize the production rate• Detailed geotechnical study to determine overall pit slopes, inter-ramp slope angles,bench face angles, bench heights and catch bench widths• Detailed hydrology and hydrological studies to determine design of dewateringsystems• Evaluation of proposed waste dump based on geochemical characterization of wasterock, geotechnical, hydrological, and hydrogeological information.• Detailed drilling and blasting studies to determine penetration rates, effective drillpatterns, powder factors, and explo...