Business
Successful Feasibility Study
Successful Feasibility Study.
About this update from Shearwater Group Plc
[{"type":"text","content":"\n Aurum Mining PLC\n19 December 2006\n\n\nFor immediate release 19 December 2006\n\n\n\n\n\n AURUM MINING PLC\n\n ('Aurum' or 'the Company')\n\n\n\n Completion of Bankable Feasibility Study for Andash Zone 1\n\n\n\nAurum Mining plc (AIM: AUR), the company formed to acquire gold and other\nmineral extraction projects in the Former Soviet Union (FSU), is pleased to\nannounce the successful completion of the bankable feasibility study for the\nproject financing and construction of the proposed mine at Andash Zone 1 in the\nKyrgyz Republic.\n\n\n\nThe feasibility study was compiled by Wardell Armstong International (WAI), a\nleading UK mining consultant with particular expertise in the FSU, in\nassociation with engineering consultants GBM and ground engineering and\nenvironmental services group, Golder Associates. The bankable feasibility study\nalso takes into account the local feasibility study prepared earlier this year\nby Ken-Too Design and Research Centre, the leading Kyrgyz mining consultancy.\n\n\n\nThe feasibility study, which confirms that the open-cast Andash operation will\ncombine low costs with high production rates, contains the following\nhighlights:\n\n\n\nMeasured and indicated resource base increased 12.5% to 19.2 million tons at\n1.1g/t gold and 0.4% copper\n\n\n\nAdditional low grade measured and indicated resource of 5.74 million tonnes at\n0.44g/t and 0.15 % copper\n\n\n\nProven and probable reserve of 16 million tonnes, containing over 1.2 million\nozs of Gold and Gold equivalent in copper giving an in-ground value of over\n$750m\n\n\n\nMining rate of 2m tpa with a pit life of 8.5 years\n\n\n\nStripping ratio of 0.8 tonnes of waste to 1 tonne of ore\n\n\n\nAverage cash operating costs of $223 per oz of gold and gold equivalent\n\n\n\nCapital cost of $55.5 million including contingencies\n\n\n\nPayback period of 3.3 years and an IRR of 39.7%,\n\n\n\nThe IRR assumes an ongoing price for gold of $550 per oz, with copper falling\nfrom an assumed start price of $6480 to $4077 per tonne during the payback\nperiod\n\n\n\n\n\nAurum is in discussions with various parties on a financial package for the\nmine's construction. Construction of the mine, preparatory work for which is\nalready under way, will begin as soon as finance is in place with commercial\nproduction expected in 2008.\n\n\n\nThe significant extent of ...