Serengeti Resources Inc. announces that it has filed on SEDAR an independent NI-43-101 Technical Report, Preliminary Economic Assessment ("PEA") for its 95% owned Kwanika copper-gold project located in the Quesnel Trough of North-Central British Columbia, Canada.
The results of the PEA demonstrate the potential technical and economic viability of establishing a new copper-gold mine and mill complex and the report recommends proceeding to a Pre-Feasibility Study.
Minority owner, Daewoo Minerals Canada, now has up to 90 days from today's date to elect to increase their project interest from the current 5% to an aggregate 35% by committing to spend an additional $7 million over the next two years with Serengeti remaining as project operator and entitled to charge a 10% operators fee.
The NI-43-101 Technical Report has been filed on SEDAR (www.sedar.com) and is also available on Serengeti's website at www.serengetiresources.com.
- Pre-tax NPV7% of CDN $324 million, 21.1% IRR, 15 year mine life.
- Life of mine (LOM) metal production of 601 million pounds copper, 676,300 ounces gold, and 2.66 million ounces silver in concentrates.
- Annual metal production of 50.4 million pounds of copper, 70,100 ounces of gold, and 181,100 ounces of silver in concentrates for the first eight years.
- Initial capital cost of CDN $476 million plus LOM sustaining capital and closure cost of $83 million for a 15,000 tpd (5.4 million tpa) mill and combined open pit, underground mining operation.
- Projected C1 (Direct cash cost of production per pound of copper net of gold, silver credits) of US$0.70/lb/Cu for first eight years or US$1.20/lb LOM
The Technical Report was authored by J. H. Gray, P.Eng., and Tracey D. Meintjes, P.Eng., of Moose Mountain Technical Services and by Marek Nowak, P.Eng., of SRK Consulting (Canada) Inc., and Chad Yuhasz, P.Geo., of SRK at date of the Resource statement, all Independent Qualified Persons, pursuant to National Instrument NI-43-101.
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101, and reviewed by the Company's qualified person, David W. Moore, P. Geo., President and CEO of Serengeti Resources Inc.