Awaiting Feasability...News release excerpt from 2004 below....
since then consider...
- Exploration CU grade% results
- Expanded size of resource
- Additional resoources identified
- price of copper
THERE HAS ONLY BEEN POSITIVE RESULTS IN EVERY CATEGORY SINCE THIS ASSESSMENT. THERE CAN BE NO UNCERTAINTY OTHER THAN THE EXCEEDING OF EXPECTATION.
FROM AUGUST 09, 2004
"Therefore, there is no certainty that the preliminary assessment will be realized. This
Technical Report and the Preliminary Assessment also speculates on the impact of
exploration success on the project economics. The purpose of this preliminary
assessment was intended purely to provide Chariot Resources with direction for future
exploration.
Selected key assumptions used in the study are:
· Copper price: US$ 0.90 per pound
· Assumed metallurgical recoveries (CuT basis): oxide 75.4%,
sulphide leach 67.5%, run of mine 58.1%, sulphide mill 93%
· Capital cost (leach operation): US$ 186 million
· Capital Cost (milling operation): US$ 62 million
· Average Mining costs: US$ 0.94/ tonne moved
· Average G&A costs: US$ 0.39/tonne
· Mine Life: 13 years
· Average mining rate: 30,000 tonnes/day
· Average strip ratio: 2.3:1
Based on these assumptions Chariot has calculated a Net Present Value for the
combined leach-milling operation (pre-tax) of US$ 91 million (at an 8% discount rate)
to US$ 52 million (at a 10% discount rate). The Internal Rate of Return (“IRR”) is
14%. Over the life of the mine the Mina Justa Prospect produces approximately 2.2
billion pounds of copper at a weighted average cash operating cost of approximately
US$ 0.52 per pound of copper. These values are for the Marcona Project as a whole
and do not take into account the proposed ownership changes as noted below under
“Joint Venture”.
The preliminary evaluation completed on the Mina Justa Prospect supports a
reasonable expectation that the open pit resources could be mined and copper
profitably produced.
Director of Exploration for Chariot Bob Baxter commented that “Chariot has recently
conducted an extensive review of the existing exploration data on the resource areas
and surrounding regional targets. This has resulted in the establishment of a
comprehensive exploration model which will form the basis of the drilling program
under the Feasibility Study. The Board is hopeful that the planned Feasibility Study
and exploration program outlined in the 43-101 may generate significant results which
may result in additional mineral resources being identified.”