Business
Virgin Metals Announces Receipt of a Positive Pre-Feasibility Study on the Los Verdes Molybdenum-Copper Project, Sonora, Mexico
TSX Symbol: VGM Shares Outstanding: 84,881,246
About this update from Minera Alamos Inc.
[{"type":"text","content":"\n\n\n\nTSX\n\n\nSymbol: VGM\n\n\nShares Outstanding: 84,881,246\n\n\nTORONTO, July 28 /CNW Telbec/ - Virgin Metals Inc. ("Virgin Metals" or\nthe "Company") announces that it has received from its consultants, headed by\nMine and Quarry Engineering Services ("MQES"), the results of the\npre-feasibility study (PFS) of a mining and processing operation to exploit\nits 100% owned Los Verdes molybdenum - copper project. A NI 43-101 technical\nreport will be filed within 45 days.\n\n\nThe study is based on a 1 million tonne per year open pit operation to\nrecover molybdenum and copper concentrates from non-oxide ore. The study\nresults for a base case, which uses constant prices of US$ 25/lb for\nmolybdenum and US$ 2.50/lb for copper, may be summarized as follows:\n\n\nMineable Reserve tonnage of non oxide ore: 7,050,000 tonnes\nAverage Mineable Reserve grades: 0.137% Mo, 0.657% Cu\nWaste:ore ratio, including stockpiling\n oxide material: 2.12\nMolybdenum recovery: 71%\nCopper recovery: 92%\nMolybdenum produced, life of mine: 15 million lbs\nCopper produced, life of mine: 89 million lbs\nCapital Cost: US$ 138.8 million\nTargeted Development Period: 3 years from issue of the PFS\nDesign and Construction Period: 2 years\nAverage Mine Site Cash Operating Cost: US$ 22.71/tonne ore\nAverage total cost (including downstream\n processing) US$ 15.53 /lb molybdenum\nAverage total cost after copper credits US$ 0.67/lb molybdenum\nUndiscounted Pre Tax Cash Flow: US$ 220.5 million\nPre Tax Net Present Value at\n 8% discount rate: US$ 96.9 million\nInternal Rate of Return (before tax): 23%\nPay back period: 3.3 years\n\n\nThe PFS includes details of a planned work program aimed at collecting\nthe data and samples that are necessary in order to finalize the basis for\nproject final feasibility study and production decision. The program includes:\ninfill drilling for resource definition and detailed mine planning; locked\ncycle flotation testwork on multiple ore types for geometallurgical mapping\nand final process plant design; hydrological and geotechnical studies to\nvalidate water and waste management plans; implementation of environmental and\nsocial management action plans and advance of other activities including but\nnot limited to permitting and surface rights acquisition.\n\n\nVirgin Metals CEO Chris Davie co...