RE: Seafield Resources Drills 114.7 m at 1.89 g/t These are superb drill results over significant intervals and will increase both the grade and resource size of the already substantial Miraflores gold discovery.
In particular ,SFF can now have confidence on the high grade veins identified within the Miraflores breccia pipe and should be able to further delineate its resource as it moves its project towards feasibility level expected in the coming quarter.
Note also that QM-DH-33 confirms the extension and continuity of high grade mineralization intercepted 80 metres north in drill hole QM-DH-03 which had a spectacular 449 m at 1.29 g/t Au, including 10 m at 2.87 g/t Au and 23.95 m at 9.18 g/t Au.
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Miraflores currently hosts a NI 43-101 compliant Measured and Indicated resource of 77.8 million tonnes averaging 0.8 g/t Au for contained gold of 1.9 million ounces and an Inferred resource of 5.5 million tonnes averaging 0.6 g/t Au for 103,043 ounces of contained gold.
A 0.3 g/t Au cut-off grade was used for the estimate as reported in the Company's press release on January 31, 2012.
Miraflores presents robust economics as indicated in a Preliminary Economic Assessment ("PEA") on the Deposit that was completed by SRK Consulting in Denver on April 23, 2012.
The indicated economics for the Deposit include a pre-tax IRR of 50%, an NPV (8%) of $249 million and a payback period of 1.8 years.
SRK considers that portions of the Miraflores gold deposit are amenable to open pit mining, while other portions are amenable to underground mining methods.
The proposed mine development in the PEA was prepared to best fit Seafield's corporate strategy focused on a medium sized operation that results in solid value accretion (as measured by NPV), moderate capital usage, and manageable environmental and social programs.
20.29 million tonnes ("Mt") of materials extracted over a 14-year mine life will comprise of 6.97 Mt at 1.38 g/t Au in open pit mining (years 1-8), 5.0 Mt at 2.27 g/t Au in underground mining (years 1-10) and 8.32 Mt at 0.43 g/t Au in stockpile processing (years 10-14).
At an initial throughput rate of 4,000 tonnes per day, an annual production of 71,000 ounces at a below-industry average cost of $524 per ounce of gold, the PEA was completed using a gold price per ounce of $1,500 and a recovery rate of 90% (See Company's press release dated March 26, 2012).
Even better, the capex is a modest $92 million not much more than annual cash flows of about $85 million, which is why the IRR is so superb.
No-brainer at prices below
.35.....................the Feasability study is going to show some superb metrics