Business
Scott Wilson Study
Scott Wilson Study.
About this update from Ormonde Mining Plc
[{"type":"text","content":"\n RNS Number : 7802S Ormonde Mining PLC 16 September 2010 \n \n\n16 September 2010\n \nOrmonde Mining plc\n(\"Ormonde\" or \"the Company\")\n \nScott Wilson Study\n \nIndependent Study Indicates Substantial Net Cash Flows from Open-Pit Mine at Barruecopardo Tungsten Project\n \nThe Board of Ormonde is pleased to report theresults of an Independent Technical and Economic Review and Optimisation Study (\"the Study\") carried out by Scott Wilson Mining (\"Scott Wilson\") on Ormonde's Barruecopardo Tungsten Project in Salamanca, Spain.\n \n \nHighlights\n \n· A review of the May 2010 resource model has concluded that the optimum approach to mining in the initial 10 year period based upon current Indicated Resources would be by open pit at a design production capacity of 500,000 tonnes per annum, an increase of 25% on previous estimated initial production rates. \n· The Study shows the Base Case Project, based solely on current Indicated Resources, is capable of generating Euro 9.3M per year of averaged pre-tax operating cash flows for 10 years, at the current tungsten price of US$245/mtu WO3.\n· Market analysis suggests that the forecast tungsten market deficit could result in prices moving to levels in line with the 2005/6 peak of just under US$300/mtu in the next few years; at a tungsten price of US$290/mtu, averaged pre-tax operating cash flows for the Base Case project rise to Euro 13.7M per year.\n· The initial capital cost for the Base Case is Euro 29.9M, an increase over previous estimates (Euro 25M) resulting from the impact of the 25% increased production rate on process plant capital and open pit waste pre-stripping requirements. The average unit cash operating cost shown is Euro 80.4/mtu.\n· The Study has also considered the possibility of further increasing the open pit production rate to 800,000 tonnes per annum for 10 years (Expanded Case) by the inclusion of the Inferred Resources. This could result in the project generating Euro16.1M per year of averaged pre-tax operating cash flows, at the current tungsten price of US$245/mtu WO3, with this cash flow rising accordingly at the higher US$290/mtu price.\n· Tungsten prices continue to ri...