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Feasibility Study
Feasibility Study.
About this update from Metals Exploration Plc
[{"type":"text","content":"\n RNS Number : 2254L Metals Exploration PLC 04 May 2010 \n \n\n \n \nRUNRUNO GOLD - MOLYBDENUM PROJECT\nFEASIBILITY STUDY AND RESOURCE UPDATE\nMetals Exploration Plc (\"Metals Ex\" or the \"Company\"), the Pacific Rim natural resources exploration and development company, announced today the results of its Feasibility Study and a resource update for the Runruno Gold-Molybdenum Project on the island of Luzon in the northern Philippines. \nOverview:\n§ Study confirms the viability of a project producing an average of 96,700 ozs of gold per annum over a mine life of 10.4 years\n§ Average production Years 1-5: 101,800 ozs gold per annum; Years 6-10: 92,700 ozs gold per annum \n§ 780,000 ozs gold classified, for the first time, as Proven and Probable Mining Reserve\n§ Average forecast operating cost $477/oz gold\n§ Capital cost forecast to be US$149.3 million - payback within 3.5 years at US$1,000 gold \n§ IRR 20% at $1,000/oz gold (ungeared and after tax)\n§ Moly credits not included - testwork continues\n \nSummary\n \nThe Feasibility Study has been project managed by the Company, with all material components undertaken by independent external consultants including Mining Associates (Resource and Mining), Goldfields and SGS (Metallurgical and Testwork), Lycopodium (Process Engineering), Leighton (Constructability and Capital Cost Review), GHD (Tailings Storage Facility, Detailed Pit Design, Mine Schedule), Aboitiz (Power Supply), AECOM (Roads, Environment and Permitting) and SGV (Taxation).\nThe study has been based on a mineable reserve prepared by Mining Associates with an open pit mining operation and biological leaching using the proven BIOX® process combined with conventional carbon in leach treatment to recover gold to doré bullion and molybdenum to a saleable molybdenum product. \nKey Project Fundamentals\nA summary of the key project fundamentals is presented below:\n\n\n\n\nDescription\n\n\nItem\n\n\n\n\nCapital Cost\n\n\nUS$149.3m\n\n\n\n\nAverage Mining Rate\n\n\n12.2 Mtpa\n\n\n\n\nAverage Operational Strip Ratio \n\n\n5.9:1\n\n\n\n\nDesign Milling Rate\n\n\n1.75 Mtpa\n\n\n\n\nAverage Gold Grade\n\n\n1.89 g/t\n\n\n\n\nGold Recovery\n\n\n91.9%\n\n\n\n\nAverage Gold Production\n\n\n96,700 ozs/yr\n\n\n\n\nLOM Gold Production\n\n\n1,006,000 ozs\n\n\n\n\nAverage Operating Cost\n\n\nUS$46...