Serengeti Resources Inc. (TSX: V.SIR, Stock Forum) said it has completed an independent NI 43-101 compliant Preliminary Economic Assessment (PEA) for its 100% owned Kwanika project in British Columbia.
According to the Serengeti Resources press release, the results of the PEA on the copper-gold porphyry project, located in the Quesnel Trough, demonstrate the potential technical and economic viability of establishing a new mine and mill complex on the property.
Highlights of the PEA include a pre-tax net present value of $263 million with a 13.4% internal rate of return over a 13.5-year-mine life. ?
Furthermore, the base case economic evaluation was generated incorporating historical three-year-trailing averages for metal prices as at Oct. 15, 2012 and a reasonable assumption for a US$/CDN$ exchange rate.
The proposed project is to develop a green-fields copper-gold-silver-molybdenum deposit with a combination of open pit and block cave underground mining for the Central Zone and open pit mining for the South Zone combined with conventional milling and flotation concentration methods.
Serengeti is a mineral exploration company managed by an experienced team of professionals with a solid track record of exploration success.
On Wednesday, Serengeti was up 35.71% and was trading at $0.095 a share. The company has a market cap of $4.9 million, based on 51.1 million shares outstanding. The 52-week high and low was $0.245 and $0.06 respectively.