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Helio Reports Preliminary Economic Assessment of the Porcupine and Kenge Resource Areas - SMP Gold Project, Tanzania
500,000 Ounce Production Base Case - NPV of US $85.7M (IRR of 24%) 800,000 Ounce Product...
About this update from Winshear Metals Corp.
[{"type":"text","content":"\n\n\n\n\n\n500,000 Ounce Production Base Case - NPV of US $85.7M (IRR of 24%)800,000 Ounce Production Upside - NPV of US $146.1M (IRR of 23%) \n\n\nTSX-V Trading Symbol: HRC\nToll Free: +1 888 955 4728\nE-mail: [email protected]\nWebsite: www.helioresource.com\n\n\nVANCOUVER, Sept. 13, 2012 /CNW/ - Helio Resource Corp (TSX-V: HRC) is\n pleased to report that it has received an independent NI 43-101\n compliant Preliminary Economic Assessment (\"PEA\") for the SMP Gold\n Project in Tanzania. The PEA was conducted on Measured and Indicated\n Resources only, with production envisaged from the Porcupine, Kenge and\n Mbenge targets. The exact location of the targets is presented in the\n map at http://www.helioresource.com/i/maps/2012-09-13_NRM1.pdf.\n\n\nIt is also important to note that this PEA evaluates only 3 of the 30\n targets within the SMP Gold Project area.\n\n\nThe PEA was conducted by SRK Consulting (Australia) Pty. Ltd., of Perth,\n Australia (\"SRK\").  As required, the full NI 43-101 compliant technical\n report will be published and filed on SEDAR within 45 days of this news\n release.\n\n\nSRK has provided two scenarios for the PEA, a Base-Case outcome, and an\n Upside outcome.  The Upside case requires geotechnical work to confirm\n that a pit wall angle of 55 degrees is viable.\n\n\nSummary (all monetary values in US$)\n\n\n \n\n\nBase Case\n\n\nUpside Case\n\n\n \n\n\n \n\n\n \n\n\nGold Price (per ounce)\n\n\n$1,450\n\n\n$1,450\n\n\nNPV\n\n\n$85.7M\n\n\n$146.1M\n\n\nIRR\n\n\n24%\n\n\n23%\n\n\nPre-production CAPEX1\n\n$100M\n\n\n$127M\n\n\nSustaining Capital1\n\n$43M\n\n\n$61M\n\n\nTotal Gold Produced (ounces)\n\n\n510,000\n\n\n803,000\n\n\nLife of Mine (years)\n\n\n9\n\n\n10\n\n\nProcessing Capacity (ore / year)\n\n\n1.6Mt\n\n\n2.4Mt\n\n\nCash Operating Cost1,2 (US$/t processed)\n\n\n$34.64\n\n\n$31.47\n\n\nTotal Cash Cost (inc 5% Royalty and 15% contingency)\n\n\n$807.00\n\n\n$799.00\n\n\nDiscount Rate\n\n\n8%\n\n\n8%\n\n\n1 including 15% contingency  2 including royalty\n\n\n\n\n\nChris MacKenzie, the Company's COO, states: \"We are very pleased with\n the outcome of the PEA which demonstrates the potential economic\n viability of the current resource.  We will use this as the basis for\n advancing the project through pre-feasibility.  The Upside Case\n req...