INV Metals Inc. is pleased to announce the Board of Directors has approved the preparation of an updated Preliminary Feasibility Study, on its 100% owned Loma Larga project in Ecuador based on the appropriate laws and regulations applicable to large-scale mining which govern underground operations with production levels greater than 1,000 tonnes per day.
Ms. Candace MacGibbon, CEO, stated, "We are very pleased with the recent announcement of the favourable definitive terms of the Exploitation Agreement ('EA') between Lundin Gold Inc. ('Lundin Gold') and the government of Ecuador announced in January 2016. Significant effort has been made since the creation of the Ministry of Mines in early 2015 to advance the mining sector within Ecuador and as a result, positive changes and clarifications in the laws governing mining have occurred since we announced the results of our PFS based on the medium-scale mining category in February 2015." Further, "The Company has performed a preliminary economic analysis of the Project at a production rate of approximately 2,500 tpd, applying similar tax assumptions for Loma Larga to those announced by Lundin Gold. Using similar parameters, assuming a 5% gold and by-product royalty and no advanced royalty, management believes the evaluation of Loma Larga at an increased optimal production rate may produce significantly increased returns dependent on gold and metal price assumptions."
The Company is engaged in discussions with its consultants to update the 2015 PFS, which would include new resource estimates; determine increased optimal production levels; and complete the associated engineering and economic studies to evaluate the feasibility and economics of the Project within the large-scale framework. The new PFS will provide updated estimations of revenue, capital and operating costs, and mine and reclamation plans. Further details will be provided once the consultants have been engaged.
The Company's cash balance as at December 31, 2015 was approximately $11.6 million (unaudited).
There are no guarantees that the Company will enter into an acceptable exploitation agreement to operate as a large-scale mining project even if the updated PFS demonstrates positive economics.