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La Zarza Copper-Gold Project
La Zarza Copper-Gold Project.
About this update from Ormonde Mining Plc
[{"type":"text","content":"\n Ormonde Mining PLC\n04 September 2006\n\n04 September 2006\n\n\n\n Ormonde Mining plc\n\n Scoping Study Indicates Positive Economics for La Zarza Copper-Gold Project,\n Spain\n\nDUBLIN & LONDON: 04 September 2006 - Ormonde Mining plc (\"Ormonde\" or \"the\nCompany\") reports the completion of a pre-feasibility Scoping Study (\"the Study\n\") for the La Zarza Copper-Gold Project in southwest Spain (\"the Project\"),\nwhere it is earning a minimum 70% interest.\n\nThe Study demonstrates positive economics for an underground mining operation,\nwhich would involve a Phase 1 development from surface to 460 metres depth via a\nramp-decline access mine, and a processing plant. The additional work\nprogrammes to complete the bankable feasibility study by mid 2007 are already\nunderway.\n\nThe main points from the Study, which includes estimates of capital and\noperating costs to an accuracy of +/- 25%, are as follows:\n\n• Phase-1 development envisages an underground mining operation producing\n 450,000 tonnes per annum over a 10-year mine life.\n\n• Mining would be by mechanised open-stoping via a new ramp access from surface.\n\n• Copper, gold, silver, zinc and lead would be recovered from the ore by\n using conventional flotation technology to produce saleable copper, \"precious\n metal\" and zinc concentrates; previous evaluations had not considered the\n production of a zinc concentrate.\n\n• Pre-production capital costs are estimated to be €26 million.\n\n• Cash operating costs of €31 per tonne treated.\n\n• At metal prices of $4,400/tonne ($2/lb) copper and $550/ounce gold,\n the ungeared IRR would be 21%, rising to 36% with appropriate gearing (at\n current prices of $7,000 copper and $600 gold, the IRR would be 65%).\n\n• Deeper drilling will commence to extend the resource below its current\n base where the deepest existing hole returned 8 metres grading 2.6% copper and\n 12 metres grading 8.3 g/t gold.\n\n\nKerr Anderson, Managing Director, said today,\n\n\"The positive outcome of the Study confirms our view that we have a viable\nmining project. The Study gives us confidence in the Project's cashflow\npotential at the metal prices used, and if metal prices were to remain high, the\neconomic returns could increase substantially. We are already proceeding with a\nfull feasibility study, and as much of ...