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Gold/Mining/Energy : Int'l Pursuit (T.IPJ) -- Ignore unavailable to you. Want to Upgrade?

To: Ron Everest who wrote (564)	2/12/1998 9:51:00 AM
From: Abner Hosmer	Read Replies (1) \| Respond to of 835

International Pursuit Corporation - Philippines scoping study complete International Pursuit Corporation IPJ Shares issued 29096895 1998-02-11 close $2.9 Thursday Feb 12 1998 An anonymous director reports: The company has completed its Hinoba-an Scoping Study. The study marks the first milestone in the proposed agreement between Minoro Mining and Pursuit. The agreement, in brief, provides that Minoro would (1) provide all the equipment required for a mining operation (ie from its adjacent operations in Cebu), and (2) secure financing for the project (estimated at US$100 million). Under the agreement Pursuit would receive US$15 million and would retain a 40% interest in the operation. The study was compiled internally with almost all data provided by independent consultants. The study is based on two options, principally for comparison purposes, with the first option being the assumption that the project will require US$100 million in financing with Minoro providing all the necessary mining equipment and the second, an all new stand alone project. The principal conclusions of the study are presented as follows: The study indicates that the geological resource, at a cut off of 0.25% copper, amounts to 440 million metric tonnes with a grade of 0.41% copper. The ore reserves which can be mined by open pit methods are 312 million metric tonnes with a grade of 0.414% copper and with a waste to ore ratio of 1.1:1. Byproduct gold, silver and pyrite are estimated to amount to approximately US$0.20 per pound of copper. The rate of production suited to the current resources is 15 million metric tonnes of ore per year. The economics of the project are robust with a rate of return of 77% and a pay-back period of 10 months under the first option, (ie using Minoro equipment). The project has a discounted net present value of US$362 million (at 10% discount rate) using a copper price of $1.00 per pound. At US$0.80 per pound of copper the NPV is US$196 million. Under the second option, (ie all new equipment), the project is also economically attractive with NPV's of US$232 million and US$64 million respectively. The cash cost per pound of copper averages US$0.48 over the 20 year life of the project. Moreover, the first 800 million pounds of copper, almost all of which will be produced in the first four years, has a cash cost of US$0.40 per pound. The break even price of copper, including capital repayment, is US$0.56 with Minoro equipment and US$0.63 with all new equipment. Based on the attractive nature of the Hinoba-an project, a feasibility study will follow with completion estimated by mid-1998 and production could be realized by 2000. (c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com