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NovaCopper Announces Positive Preliminary Economic Assessment for the Arctic Open-Pit Polymetallic Project
Estimated pre-tax NPV 8% of $928 million and 23% IRR for the Project at base case l...
About this update from Trilogy Metals Inc.
[{"type":"text","content":"\n\n\n\n\n\n\nEstimated pre-tax NPV8% of $928 million and 23% IRR for the Project at base case long term\n metal prices \n\n\n\nTSX, NYSE-MKT \nSymbol: NCQ\n\n\nVANCOUVER, July 30, 2013 /CNW/ - NovaCopper Inc. (TSX, NYSE-MKT: NCQ) (\"NovaCopper\" or the \"Company\") is pleased to\n announce the positive results of its independent National Instrument\n 43-101-compliant Preliminary Economic Assessment (\"PEA\") for its Arctic\n Copper-Zinc-Lead-Silver-Gold Project (the \"Project\") in the Ambler\n mining district of Northwestern Alaska. The PEA was prepared by Tetra\n Tech of Vancouver, Canada and the full technical report will be filed\n on SEDAR and EDGAR within 45 days of this news release. The PEA\n describes the potential technical and economic viability of\n establishing a conventional open-pit copper-zinc-lead-silver-gold\n mine-and-mill complex for the Project. The base case scenario utilizes\n long-term metal prices of $2.90/lb for copper, $0.85/lb for zinc,\n $0.90/lb for lead, $22.70/oz for silver and $1,300/oz for gold. The PEA was prepared on a 100% ownership basis and all amounts are\n stated in U.S. dollars unless otherwise noted.\n\n\nHighlights of the PEA study are as follows:\n\n\n\nInitial capital expenditure of $717.7 million and sustaining capital of\n $164.4 for total estimated capital expenditures of $882.1 million over\n the estimated 12-year mine life. In addition, closure and reclamation\n costs are estimated at $81.6 million.\n\n\nPre-tax Net Present Value (NPV)8% of $927.7 million calculated at the beginning of the two-year\n construction period and an Internal Rate of Return (\"IRR\") of 22.8% for\n the base case.\n\n\nAfter-tax NPV8% of $537.2 million and after-tax IRR of 17.9% for the base case.\n\n\nEstimated, pre-tax, payback of initial capital in 4.6 years and 5.0\n years after-tax.\n\n\nMinimum 12-year mine life supporting a maximum 10,000 tonne-per-day\n conventional grinding mill-and-flotation circuit to produce copper,\n zinc and lead concentrates containing significant gold and silver\n by-products.\n\n\nLife of mine strip ratio of 8.39 to 1.\n\n\nAverage annual payable production projected to be 125 million pounds of\n copper, 152 million pounds of zinc, 24 million pounds of lead, 29,000\n ounces of gold and 2.5 million ounces of silver for life of mine. On a\n copper equivalent basis, equat...