Impact of the POG on any updated PEAThe 2012 PEA was based on a POG of $1200 per ounce. I am not sure what the current thrashing of the price will have on the overall value of EOM. While the downtrend in the POG may be relatively short lived, any buyer could make it an issue. It is worth noting the resource estimate is at least 10% higher which could offset. It any event I have pasted the summary of the 2012 PEA. Brighter minds than me could assess the impact in today's dollars if they care to comment.
| | February 23, 2012
Eco Oro Minerals Reports Positive Updated Underground Preliminary Economic Assessment for Angostura
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| | VANCOUVER, BRITISH COLUMBIA-(Marketwire - Feb. 23, 2012) - Eco Oro Minerals Corp. (TSX:EOM) (the "Company" or "Eco Oro") is pleased to announce the positive results of an updated Preliminary Economic Assessment ("PEA") for an underground only operation at its 100%-owned Angostura gold-silver project in northeastern Colombia.
Highlights of the Base Case Scenario (US$1,200 gold and a cut-off grade 2.5 g/t AuEq) include:
- All four alternatives for concentrates produce positive returns with BIOX being the most economically beneficial method evaluated.
- Total recovery of 2.7 million gold equivalent ounces (90% Au).
- Production between 222,000 and 303,000 gold equivalent ounces per annum for 10 years with average annual production of 269,000 gold equivalent ounces.
- Cash costs of US$494/oz (total costs of US$702/oz) over the life of mine including silver by-product credits.
- Estimated initial capital cost of US$529 million.
- Sustaining capital cost of US$117 million.
- Post-tax NPV (5% discount) of US$334 million.
- Post-tax IRR of 14.8%.
- Payback in 5.5 years.
- Mine life of 10 years @ 6,000 tonnes production per day (tpd).
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