Euro Sun releases DFS for Rovina Valley open pits
2022-02-09 15:11 ET - News Release
Mr. Scott Moore reports
EURO SUN INCREASES NPV BY 41% TO $630 MILLION AT THE ROVINA VALLEY GOLD-COPPER PROJECT IN ROMANIA
Euro Sun Mining Inc. has provided the results of its optimized and updated definitive feasibility study (DFS) on the Colnic and Rovina open pits -- the initial phase of development of its Rovina Valley gold and copper project in Romania, one of Europe's largest gold-copper development projects. Euro Sun is dedicated to the responsible development of the Rovina Valley Project, which may become an important source of strategic metals within the European Union. All amounts are in US dollars unless otherwise indicated.
- Key Highlights Include (summary table set out in Table 1):
- Pre-Tax NPV increased 41% to $630 million, with an IRR of 22.7%, based on $1,675/oz gold and $3.75/lb copper
- Estimated to produce 1.47Moz of gold and 403Mlbs of copper over the life of the project at an AISC of $787/gold equivalent ounce
- Approximately 43 million tonnes or 19% less waste material expected to be mined resulting in a 1.45:1 strip ratio over LOM
- The updated study incorporates the most current cost and capital expenditure data, with initial CAPEX of $448 million
- The Rovina Valley Project incorporates dry stack tailings and is a cyanide free operation
Scott Moore, Chief Executive Officer Euro Sun Mining Inc. comments "This updated study has proven the long-term viability of the Rovina Valley Project, one of the largest undeveloped Copper-Gold projects in Europe. The substantially improved economics based upon conservative long term commodity prices, indicate further possible upside as the project moves toward production. With operating after-tax cashflows anticipated to be of more than US$1 billion and a highly competitive AISC of US$787 gold equivalent ounce oz, this is clearly a high-quality project. We are moving methodically along the permitting route and look forward to providing further positive updates over the first half of 2022."
The optimized and updated DFS for the Rovina Valley Project continues to focus on responsible mining procedures including, dry stacking, continuous revegetation, and a cyanide free processing facility. The enhanced project benefits from positive geotechnical study results, reducing waste removal and strip ratios, driving a 9% increase in gold production and a 41% increase in pre-tax NPV. The DFS also incorporated updated cost estimates and metal price assumptions.
Euro Sun is incorporating strong responsible mining procedures into every aspect of the project and is utilizing a phased development approach for the Rovina Valley Project. The Rovina Valley Project consists of two open pit gold-copper deposits, Colnic and Rovina, and the underground Ciresata gold-copper deposit. The Ciresata underground deposit is expected to be phased in following the completion of the Colnic and Rovina pits, assuming future mining studies are completed, and positive results are obtained.
Chief Operating Officer Sam Rasmussen adds "The additional geotechnical investigation and laboratory test work completed last year allowed Euro Sun to update the mining plan at both the Colnic and Rovina pits. These optimizations allowed us to lower the stripping ratios and maximize production in both pits, at a lower unit mining cost, while also extending the life of mine. These key optimizations further bolster the robustness of the Rovina Valley Project."
The technical report related to the updated DFS results will be filed on SEDAR within 45 days, in accordance with National Instrument 43-101 ("NI 43-101"). The study has been prepared with input from the following independent consultants:
Caracle Creek International Consulting MINRES CCIC (South Africa)Mineral resources DRA (South Africa) Mining, mineral reserves ERM (Romania) Environmental and social Knight Piesold (South Africa) Tailings facilities, and Hydrogeology Middindi Consulting (South Africa) Geotechnical Lawrence Consulting (Canada) Geochemistry SENET (South Africa) Processing plant and infrastructure SENET and Sidus Consulting Economic valuation / financial modelling
Rovina Valley Gold-Copper Project Overview
The Rovina Valley Project is situated in the Hunedoara County of Transylvania in western central Romania. The Rovina Valley Project consists of three deposits, Rovina to the North, Colnic Central and the Ciresata deposit to the south. The DFS only incorporates the Rovina and the Colnic deposits and does not include the Ciresata deposit, which the Company expects will be brought into the project for development later, assuming future mining studies are completed, and positive results are obtained. The Rovina exploration licence is held by Samax Romania S.R.L., a Romanian registered company which is a wholly owned subsidiary of ESM. Since November 2018, ESM possesses an exploitation permit and mining licence with a renewable 20-year validity.
The Colnic and Ciresata deposits are described as gold-copper porphyries while the Rovina deposit is termed a copper-gold porphyry. All three of these deposits are located such that they can access a central processing plant. The Rovina Valley Project processing facility is being designed to produce a gold and copper concentrate from the Colnic and Rovina deposits.
The Rovina Valley Project is within the Golden Quadrilateral Mining District of the South Apuseni Mountains, an area with a history of mining dating back to Roman times. This has supported the development of excellent infrastructure including rail, power and paved access roads. In addition, there are two international airports less than 180km from the project location. These being in the cities of Timisoara and Sibiu. The town of Brad is within 5km of the project site from where there will be a good source of local skilled labour. Sourcing the right skills and resources locally supports ESM community upliftment opportunities.
The Rovina Valley Project is expected to be mined with a standard open-pit mining method using rigid dump trucks and hydraulic loaders. The open pit mining operation is anticipated to last approximately seventeen years, during which the lower-grade material will be stockpiled if possible, for treatment at the tail end of mining operations.
Over the life of the project, it is expected that 140.0 Mt of ore will be mined. Of this ore, 123.3 Mt will be delivered to the processing facility and 16.7 Mt low grade ore stockpiled where possible for future processing. In aggregate, over the life of the mine, a total of 203.1 Mt of material will be mined and placed on the waste facility, representing a life of mine stripping ratio of 1.45:1.
Tailings Management
Knight Piesold have advanced the design of a waste management facility within the project area for the co-deposition of waste rock and filtered rougher tailings. Process plant rougher tailings will be filtered in the plant where the resultant filter cake will be transported by conveyors and will be co-mingled with waste rock prior to deposition. The cleaner tails will be filtered separately from the rougher tailings and the resultant filter cake will be transported by conveyors and deposited separately within a lined zone contained within the boundary of the co-mingled facility. This design has been engineered to reduce the risk of development of impacted seepage from potentially acid generating waste rock and capture the impacted seepage from the cleaner tailings. After completion of mining the Colnic pit, the waste rock and rougher tailings will be preferentially backfilled into the Colnic pit, while the cleaner tails will continue to report to the lined zone of the waste management facility.
Capital Costs
The estimated capital costs for the Rovina Valley Project were in almost all cases built up from quotations and proposals from equipment and service providers. The updated DFS costs currently utilize an owner purchased and operated mining fleet. All financial analysis for the Life of Mine includes the total design, construction and commissioning, production, and closure.
Project Opportunities
The updated DFS has been completed based upon the development of the Colnic and Rovina pits only. Further developing and treating the resource at Ciresata could further extend the life of the operation while utilising the infrastructure and processing capabilities anticipated to be in operation for the Rovina and Colnic deposits.
Permitting Update
The Company is currently completing the draft of the Planul Urbanistic Zonal (PUZ, Urban Zoning Plan) and expects to file with the County of Hunedoara in the coming weeks. It is expected to have the public audience on the draft plan sometime in early Q2, 2022 with final submission and approval of the PUZ in Q3 2022. Once the PUZ has been approved, submittal of the notification to complete the Environmental Impact Assessment (EIA) procedure will be filed with the Ministry of Environment.
LSE Listing
New eligibility requirements have been introduced by the London Stock Exchange and the Company is reviewing the new rules to determine the appropriate timing for moving ahead with a listing. Once the Updated Definitive Technical Report is filed the Company will have six months to complete the application to list on the London Stock Exchange.
On a consolidated basis of measured and indicated resources, the Rovina Valley Project includes 399.5 Mt containing 7.09 Moz gold and 1,410 Mlbs copper equal to 10.06 M gold equivalent ounces.
Qualified Persons
The mineral reserve estimate stated in this press release have been reviewed and approved by Mr. David Alan Thompson (ECSA No. 201190010), Principal Mining Engineer for DRA Projects (Pty) Ltd, who is an independent Qualified Person as defined by National Instrument 43-101. Mr. D Thompson was responsible for the mineral reserve estimate of the RVP Feasibility Study that supports this press release. Mr. D Thompson confirmed that he has reviewed the information in this press release as it relates to the mineral reserve estimate.
The mineral resources estimate stated in this press release have been reviewed and approved by Mr. Sivanesan (Desmond) Subramani (Pri. Sci. Nat - 400184/06), Principal for Mineral Resources at Caracle Creek International Consultants, who is an independent qualified person as defined by NI 43-101. Mr. D Subramani was responsible for the mineral resource estimate of the DFS. Mr. D Subramani confirmed that he has reviewed and approved the information in this press release as it relates to the mineral resource estimate.
Mr. Randy Ruff, P. Geo., an employee of Euro Sun and a qualified person as defined by NI 43-101 has reviewed and approved the technical information in this press release other than the mineral resource estimates and the mineral reserve estimates.
About Euro Sun Mining Inc.
Euro Sun is a Toronto Stock Exchange listed mining company focused on the exploration and development of its 100%-owned Rovina Valley gold and copper project located in west-central Romania, which hosts the second largest gold deposit in Europe.
We seek Safe Harbor.