PEA undertaken by RMC (Independent of Freeport) Reservoir Minerals has added a new press release to its web site. For full details please visit the Reservoir web site at:
Reservoir Announces Positive PEA results for the Timok JV and Cukaru Peki Deposit in Serbia VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 19, 2016) - Reservoir Minerals Inc. ("Reservoir" or the
"Company")(TSX VENTURE:RMC) (OTC PINK:RVRLF) (BERLIN:9RE) is pleased to announce the results of the Preliminary Economic Assessment ("PEA") undertaken by independent consultants on its 45% owned Timok JV Project and Cukaru Peki deposit in Serbia.
The PEA base case considers the potential economic merit of a Phase 1 starter mine, with access via a twin decline to the higher grade direct shipping ore material ("DSO") which requires crushing and grinding only before shipping. This would be followed by subsequent mining of the main Upper Zone mineralisation down to the 800m level, ("Phase 2 Main Mine"). The results of the PEA demonstrate the robust nature of the project at current and long term prices, with the base case project having a post-tax net present value ("NPV") at an 8% discount rate of US$1.55 billion (US$946 million at current metal prices of US$1,250 Au/oz and US$2.20/lb Cu) and post-tax internal rate of return ("IRR") of 106% (84% at current metal prices), on a 100% project basis.
The PEA was commissioned independently by Reservoir and has not been reviewed or approved by Freeport-McMoRan Exploration Corporation, the current Operator of the Timok project. The PEA is preliminary in nature and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the PEA will be realized.
The base case project (2.5% COG Case) comprises of the initial DSO mining phase starting in 2019 and the Phase 2 Main Mine starting in 2022 ramping up eventually to a 2 Mtpa maximum production rate, processing mineralisation with a diluted copper grade in excess of 2.5% Cu, with production ceasing in 2030.
An extended mining phase has also been considered comprising of the DSO mining phase and the Phase 2 Main Mine with a 2 Mtpa production rate, processing additional 13.8 Mt of mineralisation, primarily from the deeper portions of the deposit, with a diluted copper grade in excess of 1.0% Cu (the "1.0% COG Case"). Production in this case is extended to 2037. The project, based on the 1.0% COG Case has a post-tax NPV8 of US$1.63 billion (US$986 million at current metal prices) and post-tax IRR of 106% (84% at current metal prices), on a 100% project basis.