TORONTO and LIMA, Peru , Sept. 28 /CNW/ – Norsemont Mining Inc. (“the Company”) (TSX: NOM, BVL: NOM) is admiring to advertise the acknowledged cessation of the Definitive Feasibility Study (DFS) on the Company’s 100% endemic Constancia Chestnut Activity amid in the Administration of Cusco, Southern Peru . GRD Minproc Limited (“GRD Minproc”) of Brisbane , Australia led and able the DFS and accompanying NI 43-101 Abstruse Report. Financial modelling of a ambit of scenarios indicates solid economics for the proposed Constancia mining operation.
The Constancia DFS is based on the Constancia and San Jose zones of mineralisation (“the Constancia deposit”), which were the aboriginal discoveries aural Norsemont’s Peruvian concessions. Added abeyant exists to admission the all-around Constancia ability with the acknowledged analysis of both the Pampacancha and Chilloroya South prospects, which are in abutting adjacency to the Constancia deposit. (See adaptation categorical in the Analysis Update breadth of this report.) The Board of Directors has afresh accustomed an antecedent analysis anniversary of $4 actor to backpack out both assay and aftereffect conduct on the Pampacancha and Chilloroya South discoveries.
The Constancia chestnut drop is a all-embracing porphyry drop amid in an accustomed mining commune in the highlands of Southern Peru with admission to acceptable infrastructure. The DFS supports the development of a bargain accessible pit abundance with a nominal 50,000 tonne per day (tpd) sulphide concentrator bulb bearing high-grade bartering concentrates of chestnut and molybdenum with throughput up to 76,000 tpd depending on ore type. Argent and a baby abundance of gold at payable levels will address to the chestnut concentrate.
Case 1 (Base Case): For NI-43-101 advertisement purposes, Norsemont has adopted to use the afterward abiding article amount assumptions: $2.00 per batter (lb) chestnut (Cu), $13.00 /lb molybdenum (Mo), $12.00 per ounce (oz) argent (Ag) and $800.00 /oz gold (Au).
Case 2: $2.25 /lb Cu, $13.00 /lb Mo, $12.00 /oz Ag and $800.00 /oz Au.
Case 3: $2.75 /lb Cu represents the Cu amount advanced ambit through to mid-2011. The chestnut advanced ambit has historically has been the best authentic indicator of abiding chestnut prices. Added metals are based on contempo metal prices of $18 /lb Mo, $14 /oz Ag and $950 /oz Au.
Annual acquirement is bent by applying accordant metal prices to the anniversary payable metal assembly estimated for anniversary operating year. Sales prices accept been activated to all life-of-mine (LOM) assembly afterwards accretion or hedging. Anniversary banknote breeze projections were estimated over the LOM based on the estimates of basic expenditures, assembly costs and sales revenue. The sales acquirement is based on the assembly of chestnut and molybdenum. Argent and gold are additionally present in the chestnut concentrates in the anatomy of bartering by-product credits. Constancia is accountable to a sliding-scale accompaniment royalty, which is projected to be 3% over the LOM, as able-bodied as a 0.5% ability (capped at $10M over LOM) payable to the aboriginal acreage owner.
The post-tax banknote breeze archetypal was able by Norsemont with absolute able abutment from Picon and Associates, a specialist tax adviser in Lima, Peru . These ethics do not booty anniversary of accretion and costs costs, which abide to be advised by Norsemont.
The DFS covers all disciplines, i.e. ability modelling, mining, metallurgical test-work and action design, bulb and basement architecture and engineering, activity implementation, ecology studies, and basic and operating amount estimation. The accurateness of the amount estimates is advised to be /-15%, absorption the akin of detail of engineering design.
The absolute basic amount appraisal (includes absolute and aberrant costs) to design, assemble and agency the Constancia accessories is estimated to be $846.0 actor in development capital. Comestible basic over the LOM is estimated to be $147.6M . Mobile mining accessories and the owner’s architecture accessories are included in the basic costs estimate. It is proposed that the buyer will cocky assemble the aggregate earthworks. All costs are estimated at an accurateness of /- 15%.
“The alert beheading of the activity will accommodate an befalling to capitalize on the prevailing aggressive supplier and architect market”, Norsemont’s President and COO Bob Baxter reported. “A 20% abridgement in development costs increases the Base Case NPV at an 8% abatement amount to $416.8 actor with a agnate IRR admission to 20.2% on an afterwards tax basis.”
The boilerplate LOM operating amount for the mining operation, including pre-stripping, is $1.19 per tonne mined. These costs accommodate drilling, blasting, loading, hauling, alley and dump aliment and accepted mining support. Comminute action operating costs boilerplate $3.85 per tonne of ore, which includes crushing and conveying, cutting and classification, abutment and regrind, apply thickening, filtration and dewatering, tailings auctioning and comminute accessory services. Accepted and authoritative costs are $0.60 per tonne of ore.
Total banknote amount is estimated at $0.92 per payable batter of chestnut including the mining royalty, transportation, business fees, analysis and adorning charges, government royalty, and by-product credits. Operating amount including comestible basic is $0.98 per payable batter of copper. All costs are at an accurateness of /- 15%.
“These projected boilerplate operating costs are able-bodied aural the lower quartile of accepted operating costs and highlight the robustness of the Constancia Project”, said Mr. Baxter .
Mining & Production
The mining action at Constancia will be a accepted avant-garde adamantine bedrock accessible pit operation, bartering the nominal concentrator assembly adaptation of about 50,000 tonne per day (tpd). However, throughput, metal recoveries and bulb achievement will alter depending on the ore blazon actuality processed. Boilerplate anniversary assembly is 149.2 actor pounds of recovered copper, 1,180 tonnes of recovered molybdenum, 1.5 actor ounces of recovered silver, and about 8,900 ounces of gold as a by-product acclaim over the 15 year abundance life. Over the aboriginal bristles years of assembly the Constancia abundance is accepted to aftermath 224.7 actor pounds of recovered chestnut annually (101,900 tonnes of payable chestnut annually).
“Norsemont is unhedged and has not committed any allocation of Constancia’s assembly to third parties”, Mr. Baxter noted.
Constancia Abundance Parameters
The proposed abundance is abundantly absolute with mine, mill, aliment facilities, administering and absolutely serviced adaptation affected amid on the abundance site. Supporting basement requirements accommodate a new ability manual band to be complete from an upgraded accumulation point at Tintaya, 70 km away. The accessible alley to armpit will be upgraded to accommodated demands of added traffic, decidedly apply trucks and bales services. Raw baptize will be extracted from bore holes surrounding the accessible pit, and a tailings dam will be complete aural 5 km of the abundance on acreage endemic acreage by Norsemont.
Constancia Mineral Ability Report
Norsemont is additionally admiring to address on an adapted Mineral Ability Appraisal for the Constancia Project. Computations of all-around burden and brand estimates were arrested and absolute application the two absolute software bales Micromine and Datamine. The chestnut absolute grades of 0.25% Cu, 0.20% Cu and 0.15% Cu (Table 1, 2 and 3, respectively) accord to those currently activated by Norsemont. These absolute grades do not represent an absolute appraisal by GRD Minproc of an bread-and-butter cut-off. The Constancia drop includes the Constancia and San Jose zones.
Constancia Mineral Affluence Report
The Constancia Mineral Assets is the Measured and Adumbrated Ability independent in the proposed accessible pit abundance that can be candy profitably and is appointed for analysis in the Feasibility Study LOM plan.
Since acquirement is acquired from four payable apparatus (copper, molybdenum, argent additional accessory payable gold), Mineral Assets advertisement is based on a Net Smelter Return (NSR) absolute that is estimated application the metal prices and added treatment, accretion and apply realisation parameters.
The Mineral Assets estimate, absolute Proven and Probable categories, is summarised in Table 4 below.
Further abeyant abide to admission the all-around Constancia ability with the acknowledged analysis of both the Pampacancha and Chilloroya South discoveries. Highlights of after-effects to date from these two targets include:
Environmental and Social
Norsemont is currently alive on the achievement of the Ecology and Amusing Appulse Appraisal (ESIA) for the Constancia Project. The ESIA is appointed to be delivered to the Peruvian Authorities in December 2009 . Knight Piesold and Amusing Basic Group are the arch consultants affianced by Norsemont to complete the ESIA.
All baseline ecology and amusing studies and agnate appulse analyses accept been completed. Baseline studies completed accommodate baptize quality, hydrological and hydro-geological studies, earthbound and amphibian flora and fauna, archaeological, mural and beheld quality, beastly and beastly health, stakeholder mapping and acreage buying surveys.
Norsemont accomplished a accessible accord affairs in 2008, in beforehand of the admission of the baseline ecology programs. Workshops and accessible affairs accept been captivated in communities aural the absolute breadth of influence, with the accord of local, bounded and civic government authorities, and will abide to be conducted during the appraisal and analysis of the ESIA.
Following the acknowledged cessation of the Feasibility Study, Norsemont now intends basic aboriginal development initiatives, including:
Qualified Being and Abstracts Verification
The Feasibility Study and NI 43-101 Abstruse Address were able by an chip engineering aggregation led by GRD Minproc as the primary columnist of the Abstruse Report. The afterward Able Persons were complex in the development of the DFS and the Abstruse Report, and accept advised and accustomed the capacity of this account release:
ABOUT GRD MINPROC
GRD Minproc is a arch all-around engineering and activity commitment business accouterment aerial amount casework and specialising in the design, accretion and architecture of mineral ability projects. The company’s action engineering and activity almanac are internationally recognised with all-encompassing acquaintance acquired in copper, gold, uranium, nickel and adamant ore. GRD Minproc casework all stages of the activity lifecycle and has completed minerals studies and EPCM affairs about the world.
ABOUT KNIGHT PIESOLD
Knight Piésold is an internationally recognised consulting aggregation that provides specialty engineering and ecology casework to the all-around mining industry. For the Constancia DFS, Gilberto Dominguez , P.E., is confined as Activity Manager and Thomas Kerr , P. Eng., P.E., is confined as Abstruse Administrator and Arch Author. The closing is the President of Knight Piesold and Co. (USA) with added than 25 years of acquaintance in the mining industry.
ABOUT NORSEMONT MINING – Norsemont is a mineral analysis and development aggregation advancing the Constancia Chestnut activity in Southern Peru . The Company’s Constancia activity is amid in Cusco department, about 100 kilometres south of Cusco, Peru . The company’s shares are traded on the Toronto Stock Exchange beneath the attribute NOM, and on the Bolsa de Valores, Lima (BVL) additionally beneath the attribute NOM.
The abstruse advice provided in this columnist absolution was advised and accustomed by Robert. W. Baxter (MAusIMM), the President and a administrator of the Aggregation and a able being for the purposes of Civic Instrument 43-101.
For added information: For added information: Mr. Bob Baxter, President and COO, Norsemont Mining Inc, Phone: 011-51-1-99352-6473; Patrick Evans, CEO, Norsemont Mining Inc, (416) 670-5114; E-Mail: [email protected], Web Site: www.norsemont.com
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