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Norsemont Announces Positive Constancia Feasibility Study
Norsemont Announces Positive Constancia Feasibility Study
About this update from Norsemont Mining Inc.
[{"type":"text","content":"\n\n\n\nSep. 28, 2009 (Canada NewsWire Group) -- TORONTO and LIMA, Peru, Sept. 28 /CNW/ -- Norsemont Mining Inc. (\"the Company\") (TSX: NOM, BVL: NOM) is pleased to announce the successful conclusion of the Definitive Feasibility Study (DFS) on the Company's 100% owned Constancia Copper Project located in the Department of Cusco, Southern Peru. GRD Minproc Limited (\"GRD Minproc\") of Brisbane, Australia led and prepared the DFS and related NI 43-101 Technical Report. Financial modelling of a range of scenarios indicates solid economics for the proposed Constancia mining operation.The Constancia DFS is based on the Constancia and San Jose zones of mineralisation (\"the Constancia deposit\"), which were the first discoveries within Norsemont's Peruvian concessions. Further potential exists to increase the global Constancia resource with the successful exploration of both the Pampacancha and Chilloroya South prospects, which are in close proximity to the Constancia deposit. (See details outlined in the Exploration Update section of this report.) The Board of Directors has recently approved an initial exploration budget of $4 million to carry out both reconnaissance and follow-up drilling on the Pampacancha and Chilloroya South discoveries.The Constancia copper deposit is a large-scale porphyry deposit located in an established mining district in the highlands of Southern Peru with access to good infrastructure. The DFS supports the development of a low-cost open pit mine with a nominal 50,000 tonne per day (tpd) sulphide concentrator plant producing high-grade commercial concentrates of copper and molybdenum with throughput up to 76,000 tpd depending on ore type. Silver and a small quantity of gold at payable levels will report to the copper concentrate.Financial Highlights-------------------------------------------------------------------------Commodity Price Scenarios-----------------------------------------------------Case 1 Case 2 Case 3Base Case-------------------------------------------------------------------------NPV (5%) $496.8M $731.9M $1,277.5M-------------------------------------------------------------------------NPV (8%) $303.6M $494.2M $931.8M-------------------------------------------------------------------------IRR 15.5% 19.4% 26.9%-------------------------------------------------------------------------Payback ...