Business
Norsemont Mining Announces Constancia Scoping Study Results
NPV Ranges from $396M to $618M. IRR Ranges from 20.9% to 31.8%. Shares Issued and Outstanding: 37...
About this update from Norsemont Mining Inc.
[{"type":"text","content":"\n\n\n\nNPV Ranges from $396M to $618M. IRR Ranges from 20.9% to 31.8%.\n\n\nShares Issued and Outstanding: 37,912,878\n\n\nTSX: NOM\n\n\nBVL: NOM\n\n\nVANCOUVER and LIMA, Peru, Nov. 5 /CNW/ - Norsemont Mining Inc. ("the\nCompany") (TSX: NOM, BVL: NOM) today announced that SRK Consulting (SRK) has\ncompleted the scoping study for Constancia copper project in southern Peru.\nThe scoping study considers an open pit mining operation using a standard\nmilling and froth flotation plant to produce high grade copper and molybdenite\nconcentrates. The study is based on geological information and metallurgical\ntesting available at the time of reporting, price quotations for major\nequipment and mining components, including owners' fleet, and estimates of\nlong-term prices for copper, molybdenum and silver. Exploration drilling at\nthe Constancia project is continuing and the Company believes that the\npotential exists to significantly increase the current resource.\n\n\nFor economic evaluation purposes, the scoping study focused on three\noperating scenarios: a 30,000 tonne per day (t/d) stand-alone case (SA), a\n30,000 t/d expandable to 55,000 t/d case (EX), and a 55,000 t/d stand-alone\ncase (SA). Based on the current resource, the corresponding life of mine (LOM)\nfor the 30,000 t/d and 55,000 t/d stand alone cases are 20 and 12 years,\nrespectively.\n\n\nEstimated production for the 55,000 t/d SA case is approximately\n112,218 tonnes per year of copper recovered over the first five years, with a\nLOM annual average production of 90,411 tonnes. For the 30,000 t/d SA case\nestimated production is 72,814 tonnes per year of copper recovered during the\nfirst five years, with a LOM annual average of 53,598 tonnes. During the\nfeasibility study the expansion of the 30,000 t/d EX case to 55,000 t/d in\nyear 6 or 7 will be reviewed together with the 55,000 t/d SA case.\n\n\nBased on a discount rate of 8 percent and a payback period which\nincorporates a two year start up, the Constancia project's Internal Rate of\nReturn (IRR) and corresponding Net Present Value (NPV) for the three operating\nscenarios are as follows:\n\n\nDescription 30,000 t/d SA 30,000 t/d EX 55,000 t/d\n-------------------------------------------------------------------------\n With With With\n Without 25% Without 25% Without 25%\n Contingency Cont. Cont. Cont...