Newstrike Capital (NES-V) Oct 30, '14 has filed on SEDAR a National Instrument 43-101 compliant technical report for its 100% owned Ana Paula Project located in the prolific Guerrero Gold Belt, Mexico.
The results of the Preliminary Economic Assessment were published on September 15, 2014 with highlights including a robust, high margin, rapid payback, 8.2-year open pit mining project that benefits from high gold grades with a low strip ratio.
The study was independently prepared by JDS Mining and Energy, Inc. and is available at www.sedar.com and the Company's website at www.newstrikecapital.com.
PEA HIGHLIGHTS
All dollar amounts in this release are stated in US currency.
Base Case at $1,300 Au and $20 Ag per ounce
Pre-tax NPV@5% of $405.3 million, IRR of 47.5% with a 2.0 year payback After-tax NPV@5% of $232.1million, IRR of 32.8% with a 2.4 year payback Initial capital costs of $163.9 million (Total life-of mine ("LOM") - $219.7 million includes sustaining/closure costs of $55.8 million and contingency costs of $36.2 million) Open pit mine with 6,000 tonnes per day ("tpd") gravity/flotation/CIL process plant Cash costs of $527/ oz gold, $486/oz gold Net of By-Product credits All-in sustaining costs ("AISC") of $567/oz gold, $526/oz gold Net of By-Product credits Average annual production of 116,000 gold ounces and 239,000 silver ounces over a 8.2 year mine life LOM average head grades of 2.24 g/t gold and 6.89 g/t silver LOM gold and silver recoveries of 75% and 50%, respectively LOM strip ratio of 2.60 to 1 of waste to mineralized materialThe PEA mine plan and economic model include the use of inferred resources which are considered to be too speculative to be used in an economic analysis except as permitted by NI 43-101 for use in PEA's. There is no guarantee that inferred resources can be converted to indicated or measured resources and, as such, there is no guarantee that the project economics described herein will be achieved.
In management's view, the economics concluded by the PEA provide a strong incentive for continued geotechnical, metallurgical and engineering studies and the Company will commence a Pre-Feasibility Study with completion expected in 2015.
Qualified Persons and QA/QC
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 ("NI 43-101) and reviewed by Mr. Thomas H. Bagan, a Qualified Person. The field programs and selection of the metallurgical samples from Ana Paula were carried out under the supervision of Dr. Craig Gibson, PhD, CPG, and a Qualified Person under NI 43-101.
The PEA was conducted under the overall direction of Mr. Michel Creek, of JDS Energy and Mining, Inc. of Tucson Arizona. Mr. Creek is a JDS Project Manager and an independent "Qualified Person" under NI 43-101 who has verified the technical and scientific information and prepared the economic analysis included in this news release. There are no known legal, political, environmental, or other risks that could materially affect the potential development of the Project.
Under Mr. Creek's review, the following contributed to their respective sections:
Kelly McLeod, P.Eng, JDS - Mineral Processing and Recovery Methods
Tony Loschiavo, P. Eng, Associate, JDS - Mine Design
Dawn Garcia, CPG, JDS - Environmental Studies, Permitting, & Social
Robert Matter, P.E., JDS - Infrastructure and Tailings
The information in this release related to the Independent Technical Report has also been approved by Michel Creek, P.E., Kelly McLeod, P.Eng., Tony Loschiavo, P.Eng., Dawn Garcia, CPG, Robert Matter, P.E., Dr. Craig Gibson, PhD, CPG, and Herb Welhener, SME-RM, who are independent Qualified Persons as defined under National Instrument 43-101.
About Newstrike Capital (TSX VENTURE:NES)
Newstrike Capital Inc., www.newstrikecapital.com, is a precious metal focused explorer, targeting known and historic mining districts in Mexico. Newstrike's flagship property, 'Ana Paula', is an advanced-stage, high grade, near surface gold/silver resource with robust economics in the Guerrero Gold Belt ("GGB"). Key senior members of the Company's current management and directors have participated in Guerrero Gold Belt discoveries, including Goldcorp Inc.'s producing Los Filos Mine and Torex Gold Resources advanced stage Morelos Project in Guerrero State.
Newstrike holds a 100% interest in certain exploration properties in Mexico located within two established mining districts; the Au (Ag-Cu) skarn-porphyry camp of the Guerrero Gold Belt, and the polymetallic Pb-Zn-Ag (Au-Cu) rich epithermal camp of the mining districts of Oaxaca State.
Newstrike Capital Inc.
Richard Whittall
Director, President & CEO
604-605-4654
www.newstrikecapital.com
http://newstrikecapital.com/blog
Newstrike Capital Inc.
Patrick Piette
Investor Relations
416-526-9911
ppiette@minera.ca |
