Petaquilla Minerals Ltd PTQMF

2005 scoping study had strong economics

[goldpig]

Cambridge Mineral Resources plc Announces SRK
Conceptual Mining Study Upgrades For Lomero-Poyatos
Project Economics
BRISTOL, ENGLAND--
* Projected Internal Rate of Return of 70% and Net Present Value
in excess of EUR30 million
* Cash operating costs estimated at US$ 211 per ounce gold
equivalent
* Projected net profits in excess of EUR8.3 million per annum with
production planned to commence in 2005
Cambridge Mineral Resources plc ("Cambridge") is pleased to announce an upgraded Conceptual
Mining Study compiled by independent consultants, SRK Consulting Limited ("SRK"), in respect of the
Lomero-Poyatos polymetallic project, located in the Iberian Pyrite Belt in Southern Spain.
The SRK analysis of the Lomero-Poyatos project, containing an Inferred and Indicated gold resource
of 2.1 million ounces and other metals, concludes that the project provides robust economic indicators.
The study estimates that the project will provide an Internal Rate of Return of 70% and a Net Present
Value in excess of EUR30 million using a conservative discount rate of 15%.
The economic model incorporates current precious and base-metal prices, credits for the sale of
industrial by-products, locally established operating costs and metallurgical recoveries based upon
processing test work to date. The study is based on initial production of 350,000 tonnes of ore per year
utilising locally available processing plant, with the potential to increase mine output significantly to 1
million tonnes per year upon expansion of the facilities.
The projected capital payback period is two years on initial capital expenditure of EUR15.3 million with
cash operating costs per ounce gold equivalent estimated at US$ 211/oz. Net profits are demonstrated
to be in excess of EUR8.3 million per annum with an open pit mine life of a minimum of 8 years.
Cambridge has a 100% interest in the mining rights of the project area which covers approximately 15
square kilometres of Exploitation Permits, the highest level of concession under Spanish Mining Law.
This is the Spanish equivalent of a mining permit, reducing the permitting requirements for the restarting
of mining activities and also offering long term security to any future development plans.
In regard to securing initial mine development capital for Lomero-Poyatos, Cambridge has been
approached by three major banking entities interested in providing project finance.
Contact:
Cambridge Mineral Resources plc
David Bramhill
Phone: + 44 (0) 117 957 3666 or + 44 (0) 780 154 03