News release: Positive results from Lyon project engineering study
International Taurus Resources Inc Shares issued 26,751,339 Jun 22 close $0.46
Tue 23 Jun 98 News Release
Mr. Robert Blakestad reports
The company has received a detailed engineering review of the Lyon project
near Yerington, Nevada. This report was prepared over the past two months
by Laxey Mining Services.
The study was commissioned to test the economic viability of an underground
mining operation at the Lyon project, and to develop an exploration plan to
bring the project to a production decision in the shortest time frame
possible. Site inspections, a detailed estimation of capital and operating
costs, and the preparation of a fixed price mill/tailings pond quote by an
independent contractor, Orocon Engineering, were, components used by Laxey
Mining to conduct their review.
The engineering study concluded:
There is a high probability of proving up sufficient reserves to justify
construction of a 65 million pound per year copper mine.
An incremental approach to development provides the lowest capital risk and
the highest rate of return. This approach starts with a 1,500 ton per day
operation based in the Northwest deposit, followed by expansion to 3,500
tons per day over a five year period as the East and E-2 deposits are
brought onstream.
Initial exploration should focus on defining a high grade starter zone in
the Northwest deposit near hole USS-44 (173 feet grading 4.54 per cent Cu,
and 0.019 oz/t Au, including 62 feet grading 7.55 per cent Cu and 0.033
oz/t Au). A resource of one to two million tons grading 5 per cent Cu in
the Northwest deposit, will provide sufficient operating revenue to make
this a robust project.
The current indicated resources at the Lyon project stands at 12.1 million
tons grading 3.41 per cent Cu, and .01 to .02 oz/t Au. The East and E-2
deposits also contain 27 per cent iron as magnetite, a potentially saleable
by-product used in the steel, coal and the ferro-concrete industries.
Based on the successful definition of these resources, including the
initial 5 per cent zone, the study estimates an 18.6 per cent after tax
rate of return and $140-million (U.S.) in total cash flow, based on a $1
per pound copper price and minor credits for gold, silver and magnetite.
The breakeven copper price is in the range of 0.750 per pound, based on an
initial capital cost of $50-million (U.S.) and a project life capital cost
of $122-million (U.S.), with operating costs of $26.96 per ton.
Important flexibilities built into this plan include the opportunity to
develop only the high grade Northwest starter resource, with future
expansion timed to come onstream during periods of higher copper prices.
The 1998 exploration plan is designed to bring the project to
pre-feasibility stage this fall, through definition of the required high
grade resource and a modest 10 per cent expansion of the overall resource.
If successful, development of ramp access to the Northwest deposit, and
commencement of feasibility level definition drilling would begin early in
1999. The company's goal is to bring the Lyon project to a production
decision within the next 18 to 24 months.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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Looks good. The only negative I see is " The company's goal is to bring the Lyon project to a production decision within the next 18 to 24 months." The production decision is off for 1 1/2 to 2 years.
Regards,
Bob |
