FYI
Wardrop faster on this BFS
Details to compare to....no comparison folks
Abacus Mining & Exploration Corporation (TSXV: AME "Abacus") is pleased to announce the results of the Feasibility Study ('FS') for the Ajax Copper-Gold Project (the "Ajax Project") located southwest of Kamloops, B.C. The Ajax Project is being developed through KGHM Ajax Mining Inc. ("KGHM Ajax"), owned 49% by Abacus and 51% by KGHM Polska Miedz S.A. ("KGHM"). The NI 43-101 Technical Report will be available on the Company's website (www.amemining.com) and on SEDAR (www.sedar.com).
Base Case Highlights: (all economic figures in US$)
- Total proven and probable mineral reserves of 3 billion lbs Cu and 2.7 million ozs Au at 0.27% Cu and 0.17 g/t Au based on $2.50 Cu and $1,085 Au
- 23 year mine life at a processing rate of 60,000 t/d or 21.9 million t/a at a LOM stripping ratio of 2.4:1
- LOM production of 2.5 billion lbs Cu and 2.28 million ozs Au in concentrate
- Initial capital costs of $795 million, including contingency of $87 million
- Cash cost per lb of copper of $1.28 net of gold credits
Economic Analysis:
The base case economic analysis produced by Wardrop, a Tetra Tech Company (Tetra Tech) projects that the Ajax Project will have a pre-tax net present value of $416 million (@ 8% discount rate) and internal rate of return of 14.5% based on pre-tax 100% equity financing. The pre-tax economic results for the base case and additional case scenarios are presented in the following table.
Table 1: Summary of Ajax Project Pre-Tax Economic Results
|
Base Case
Scenario
|
Alternate Case
Scenario1
|
Alternate Case
Scenario2
|
|
Cu US$/lb
|
$2.75
|
$3.00
|
$ 3.50
|
|
Au US$/oz
|
$1,085
|
$1,300
|
$1,700
|
|
Exchange Rate (US$:C$)
|
0.92
|
0.94
|
0.98
|
|
Pre-tax Internal Rate of Return
|
14.5%
|
19.5%
|
30.3%
|
|
Cash Cost per lb Cu (net of gold credits)
|
$1.28
|
$1.11
|
$0.79
|
|
Pre-Tax Net Present Value
(8% discount rate)
|
$416 million
|
$818 million
|
$1,601 million
|
|
Payback Years
|
7.8
|
3.8
|
2.2
|
