Hi Marcos:
News from Cadre:
Cadre Resources Ltd.
P.O. Box 48836 Bentall Centre
595 Burrard St., Vancouver, B.C. CANADA V7X 1A8
Phone: (250) 447-6641
TSX Venture Exchange-CSL 12g-2(b):82-2911
NEWS RELEASE
December 15, 2003
R. Page Chilcott, the President of Cadre Resources Ltd. (the “Company”) states that the formal written Application for the Caroni Project concessions has been completed with the Ministerio de Energia y Minas (MEM). This filing, pursuant to terms of the Ley de Minas, seeks the exclusive right, as a follow-up to extensive prefeasibility work done to date, to conduct a detailed independent, comprehensive Bankable Feasibility Study (BFS). The successful completion of that BFS, subject to financing, leads to tenure and exclusive sustainable mining exploitation rights to 25 concessions on the lower Caroni River, Bolivar State, Venezuela. The concession Application encompasses a total of 12,463 hectares in two blocks, upstream (approx 12kms) and downstream (approx 20kms) from the Caruachi Dam.
The Company and its Venezuelan agent have extensively discussed and reviewed the proposed Project, including the environmental, socio economic and reclamation aspects, with senior MEM administration including MEM Minister, Vice Minister, Director General of Mines and others. The Application, including the concession layouts has been verbally accepted by the MEM. The Company has been advised by it’s agent to expect written official confirmation shortly.
The independent Prefeasibility Study (PFS) completed earlier in 2003 was based on gold at $300 per ounce. That Study projected an Internal Rate of Return (IRR) of 58% and Net Present Value (NPV) of $228 million US over 20 years. The Cash flow Index (CFI) was projected to be 3.1.
Based on a very conservative gold price of approximately $370 per ounce and using the same PFS parameters, the IRR increases to 65% and NPV increases to $272 million over 20 years. The CFI increases to 3.7. Gold at $400 per ounce or higher adds yet another dimension.
Granting of satisfactory concession permitting will allow the preparation and arranging of finance in order to carry out bankable feasibility work which will encompass an Environmental Impact Study (EIS), bulk sampling and pilot plant processing. The FS will also put forward the various socio-economic benefits (Special Advantages) attributable to the proposed project.
CADRE RESOURCES LTD.
Per:
R. Page Chilcott, President
The TSX Venture Exchange or any other regulatory authority has not reviewed and does not accept the responsibility for the adequacy or accuracy of the content of this news release. |
