Feasibility Update - Oh my....These guys are too rich. Every year another hundred million or so added to their so-called Feasibility Studies. This mine was "supposed" to cost less than $300MM when they started flogging this play...
GEOVIC MINING CORP.: UPDATE ON STATUS OF NKAMOUNA FEASIBILITY STUDY
Geovic Mining Corp., on behalf of its 60.5-per-cent-owned subsidiary,Geovic Cameroon PLC, has provided the current status of the feasibilitystudy for its Nkamouna cobalt-nickel-manganese project in Cameroon,Africa.
The report, in preparation by Lycopodium Minerals Pty. of Perth,Australia, will incorporate Project changes since 2008, includingimprovements to the process chemistry, processing plant, and mine plan.It will not be completed as initially anticipated by the end of 2010.
Through December 2010, the following observations and conclusions have been made:
-- The process of updating the Feasibility Study has revealed significantlyhigher Project capital costs. Geovic's third quarter 2010 10-Q disclosedthat initial capital costs plus working capital would be at least $100million higher than the $417 million combined estimate from the previousFeasibility Study, dated September 2008. The Company now anticipatestotal initial capital costs plus working capital to be closer to $600-$650 million (including estimated contingencies), not includingconstruction of a process refinery which, if needed, is estimated tocost at least an additional $150 million.
-- Discussions with potential offtake partners, nearly all located in theFar East, have yielded a high level of interest in purchasingintermediate cobalt/nickel mixed sulfide precipitate, or MSP, a productthat would not require construction of a refinery. Consequently,deferral of the refinery (for converting MSP to finished cobalt andnickel products) is being considered by the Geovic Cameroon shareholdersand Board of Directors, a decision that will be made in the comingmonths.
-- The Company is evaluating several opportunities to improve Projecteconomics, and will actively pursue all such avenues immediately, withthe Feasibility Study projected to be finalized by the end of April2011. The Feasibility Study will address all aspects of Projecteconomics, and is intended to establish Project viability.
We seek Safe Harbor.
? 2010 Canjex Publishing Ltd.