Moneta Announces Positive Preliminary Economic Assessment on Golden Highway Project with 24.4% IRR and $748M NPV

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[{"type":"text","content":"\n\n\n\n\n\nTIMMINS, ON, Nov. 1, 2012 /CNW/ - Moneta Porcupine Mines Inc. (TSX: ME) (OTC: MPUCF) (XETRA: MOP)\n (\"Moneta\") announces results from a National Instrument 43-101 Preliminary Economic\n Assessment (\"PEA\") on its 100% owned Golden Highway Project\n (\"Property\") located east of Timmins, Ontario (Canada).\n\n\nThe results of the PEA demonstrate the potential technical and economic\n viability of establishing a new gold mine and mill complex on the\n Property. All currency amounts in this press release are expressed in\n Canadian dollars ($) unless otherwise noted.\n\n\nPEA Economics (using US$1,350/oz gold - see sensitivity Table 1 below):\n\n\nPre-tax Net Present Value of $748 million (5% discount rate), 24.4%\n internal rate of return, 4.1 year payback period.\n\n\n\n\n\nTABLE 1: ECONOMIC SENSITIVITY TO GOLD PRICE\n\n\nGold Price (US$)\n\n\n  BASE CASE:$1,350\n\n\n   $1,400\n\n\n   $1,500\n\n\n   $1,600\n\n\n   $1,700\n\n\nNet Present Value ($ millions)\n\n\n748\n\n\n858\n\n\n1,080\n\n\n1,301\n\n\n1,523\n\n\nInternal Rate of Return (%)\n\n\n24.4\n\n\n26.8\n\n\n31.3\n\n\n35.5\n\n\n39.5\n\n\nPayback period\n\n\n4.1\n\n\n3.7\n\n\n3.3\n\n\n2.9\n\n\n2.6\n\n\n \n\n\nIan C. Peres, President and CEO of Moneta commented, \"This Preliminary\n Economic Assessment demonstrates robust economics under the\n conservative US$1,350/oz gold base case scenario.  With a positive view\n on gold, the Golden Highway asset becomes increasingly attractive. We\n are particularly pleased to see a robust 88% potentially economic\n portion of the resource based on our recent Oct 2012 NI 43-101 resource\n estimate. Our exploration focus continues with drilling the large\n untested areas within the conceptual pits as well as other adjacent and\n high priority targets on the Property.\"\n\n\nPEA Highlights:\n\n\nLife of mine metal production of 3.8 million ounces gold with 92%\n recovery;\n\n\nPre-production capital costs of $607 million.\n\n\nProcessing facility throughput of 25,000 tonnes per day (\"tpd\");\n\n\nLife of mine average cash costs of $794 per ounce gold;\n\n\nAverage diluted mill head grade of 1.11 g/t gold;\n\n\nAverage annual production of 288,000 gold ounces;\n\n\nOperating strip ratio of 5.6 : 1;\n\n\n12 year mine life\n\n\nAreas of upside p...

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