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Oremex Reports Positive Results from Independent Preliminary Assessment Study on Tejamen Silver Property
Oremex Reports Positive Results from Independent Preliminary Assessment Study on Tejamen Silver Property.
About this update from Monarca Minerals Inc.
[{"type":"text","content":"\n\n\n\n\nVANCOUVER, Oct. 3 /CNW/ - Oremex Resources Inc. (TSX-V: ORM) (the\n\"Company\") is pleased to announce positive results from an independent\nPreliminary Assessment Study conducted by Snowden Mining Industry Consultants\nInc. (\"Snowden\") on the Company's Tejamen silver property in Mexico. Snowden\nis an internationally recognized independent consulting company that has\ncompleted a large number of assessments for the mining industry.\nIn order to complete the Preliminary Assessment on Tejamen, Snowden\nutilized the results of an independent resource study by Wardrop Engineering\n(NI 43-101 compliant as reported in April 11, 2006 news release). That study\nconcluded that the Tejamen property contains a silver-equivalent Inferred\nresource of 50.8 million ounces (69.8 grams per tonne of silver equivalent in\n22.6 million tonnes). The base case mining scenario developed by Snowden\nutilizes an optimized pit shell containing 21.7 million tonnes grading\n51.9 grams per tonne silver and 0.023 grams per tonne gold.\nThe following table illustrates the impact of the silver price on the\nestimated Net Present Value (NPV) of the project, before taxes. A 7% discount\nrate has been applied.\n\n>\n\nBased on the cost and productivity assumptions provided in the\nPreliminary Assessment Study, Snowden concludes that a 10,000 tonne per day\n(3.65 million tonnes per year) surface mining project and heap leach\nprocessing system can generate a profitable operation when silver prices\naverage US$8 per ounce (approximately US$0.26 per gram) and process recoveries\nfor silver average 65 percent or greater over the life of mine. Preliminary\nmetallurgical testwork to date has indicated recoveries of 70 percent for\nsilver.\nAt a silver price of US$10 per ounce, silver recovery of 70 percent,\ninitial capital investment of US$45.2 million, sustaining capital of\n$8.6 million (including a contingency of 15%), and life-of-mine average cash\noperating costs of US$5.72 per tonne (including a contingency of 20%) the Net\nPresent Value is estimated to be US$58.6 million (before taxes). The foregoing\nis based on a mine life of approximately seven years, one year of\npre-stripping and heap construction, and an average stripping ratio of\napproximately 2:1. At a silver price of US$12 the project has a Net Present\nValue of US$97.4 million. The Snow...