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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Tasca Resources Ltd | TSXV:TAC | TSX Venture | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.035 | 0.035 | 0.04 | 0 | 01:00:00 |
Hot Features
Premium
Euromax Resources Ltd. (TSX VENTURE:EOX) ("Euromax" or the "Company") is pleased
to announce the results of the Pre-Feasibility Study ("PFS"), including a maiden
Mineral Reserve, for its 100% owned Ilovitza gold-copper porphyry project in
Macedonia. With an NPV of US$675 million the PFS demonstrates the economic
robustness of the Ilovitza Project (the "Project"), building upon the
significantly increased Mineral Resource announced 3 December 2013, as well as
incorporating costs based on supplier quotes and engineering studies carried out
to at least pre-feasibility industry standards.
PFS Highlights (based on US$1,250/oz Au and US$3.00/lb Cu)
- Maiden Total Probable Reserve of 225 million tonnes containing:
- 2.45 million ounces of gold
- 905 million pounds (411 thousand tonnes) of copper
- Total Sulphide Probable Reserve of 209 million tonnes at an average grade
of 0.34 g/t Au and 0.20% Cu
- Total Oxide Probable Reserve of 16 million tonnes at 0.33 g/t Au
- Throughput of 10 million tonnes per annum and mine life of 23 years
- Conventional open pit with strip ratio of 0.7:1
- Average process recoveries of 86.5% gold and 84% copper
- Average annual payable production of 95,000 oz gold and 16,000 tonnes of
copper
- World Gold Council defined Adjusted Operating Cash Costs of US$216/oz and
All-In Costs of US$334/oz(i)
- Pre-tax NPV(5%) of US$675 million and Post-tax NPV(5%) of US$558 million
- Pre-tax IRR of 18.6% and Post-tax IRR of 16.5%
- Initial Capex US$502 million including contingency
- Distributable post-tax net cash flow of US$1.2 billion after capex
The PFS was produced by the following experts who worked with the Company's
technical team:
- Tetra Tech - Geology, Resources, Mineral Processing and Engineering,
Infrastructure, Hydrolgeology, Hydrology;
- ACA Howe International - Mining and Reserves, Mine Infrastructure;
- Faculty of Civil Engineering from St. Cyril and Methodius University of
Skopje - Tailings
A detailed breakdown and discussion of the PFS results can be found in the
Appendix and an independent NI 43-101 compliant technical report will be filed
on SEDAR and the Company's website within 45 days of this announcement.
Project Advancement & Financing
The Company has established a Technical Advisory Committee ("TAC") of leading
experts in their fields who will form the core of the owner's team to ensure
efficient project execution and who will oversee the progression of the Project
through full Feasibility Study/Front End Engineering Design ("FS/FEED") and into
construction.
The recently announced sale of the Company's Bulgarian assets, the establishment
of a Balkan focused exploration services company and corporate streamlining, has
freed up management and financial resources to be wholly dedicated to the
development of Ilovitza.
The Company is implementing its finance plan in two phases: Phase 1 to cover the
FS/FEED costs and Phase 2 for the financing of the construction capex.
Confidentiality agreements have been executed and due diligence is underway with
several potential financing partners, contemplating an asset-based financing for
Phase 1 to the start of construction.
Financing structures being considered include metal streaming and royalty
arrangements. The agreed structure will be designed to ensure minimal
shareholder dilution, whilst at the same time leveraging the asset value, so as
to neatly dovetail into the Phase 2 financing of construction scheduled to
commence in 2016. Further, with the completion of the PFS, the Company is now
able to engage with certain banking counterparties to initiate due diligence for
a Project Financing to fund Phase 2, the construction.
Commenting on the results of the PFS, Pat Forward, Chief Operating Officer,
said: "Following the work carried out in 2013 to define the expanded Mineral
Resource, we are pleased that our PFS on the Ilovitza Project has defined a
financially attractive operation based on a robust study, more than justifying
the next steps in project development. We are now in an excellent position to
build on this as we continue with our full feasibility work and then the front
end engineering and continue to establish our owner's team to fulfil our
ambition to build and operate the first major modern mine in Macedonia."
Commenting on the results of the PFS, Steve Sharpe, President & CEO, said:
"Despite incredibly challenging mining equity markets that have seen a decline
in the market value of our Company despite the significant increase in the asset
value of Ilovitza, it is particularly rewarding to be able to now publicly
demonstrate the exceptionally robust economics of the Ilovitza Project. This is
a massively important project for Macedonia, and as one of the few permitted
mining projects in Europe, will dramatically enhance the economic profile of the
country. The overwhelming local, national, and indeed supranational support for
the project places us in the enviable position of certainty of development. Our
immediate task is for the management team to deliver the implementation of a
minimally dilutive financing package and the management of the DFS/FEED process
to ensure the start of construction in 2016 and first production in 2017. These
areas are exactly where our strongest skill sets and track records lie."
Conference Call
The Company will be hosting a conference call and question and answer session to
discuss the results of the PFS on Friday 6th June, 2014 at 10 am EST / 3pm BST.
A new presentation will be uploaded to the Company's website in advance of the
call. To participate in the call, please dial:
United Kingdom: 020 3139 4830 or UK Toll-Free Number: 0808 237 0030
Canada: 1 514 841 2196 or Canada Toll-Free: 1 866 404 5783
United States: 1 718 873 9077 or US Toll-Free Number: 1 866 928 7517
Participant pin code: 76848541#
Notes:
(i) Adjusted Operating Cash Costs and All-In Costs as defined by the World Gold
Council which assumes copper as a by-product and includes US$1.8M corporate G&A.
Qualified Person
Mr Patrick Forward, FIMMM, a Qualified Person under National Instrument 43-101
Standards of Disclosure for Mineral Projects of the Canadian Securities
Administrators and COO of the Company, reviewed and approved the scientific or
technical disclosure in this release and has verified the data included.
About Euromax Resources Ltd.
Euromax is a Canadian exploration and development Company with gold and base
metal assets in Macedonia and Serbia and an exploration services company in
Bulgaria. We are focused on developing mineral resources in Southeastern Europe,
with the objective of becoming a world-class mining company in the region. Our
strength lies in our corporate and local management and technical expertise in
Macedonia, Bulgaria and Serbia.
This news release contains forward-looking statements including but not limited
to statements regarding a maiden reserve estimate; the completion of a
Pre-Feasibility Study; completion of a Definitive Feasibility Study, and
securing of finance for its Ilovitza project, including in respect of either
Phase 1 or Phase 2. In making the forward-looking statements in this release,
the Company has applied certain factors and assumptions that are based on
information currently available to the Company as well as the Company's current
beliefs and assumptions made by the Company, including with respect to mineral
resource estimates, that the key assumptions and parameters on which such
geological interpretations are based are reasonable, that the Company will be
able to obtain the necessary supplies, equipment, personnel and any financing
required to carry out its planned activities, that the Company's objectives
concerning the Ilovitza project can be achieved and that the Company's
activities will proceed as expected. Although the Company considers these
assumptions to be reasonable based on information currently available to it,
they may prove to be incorrect, and the forward-looking statements in this
release are subject to numerous risks, uncertainties and other factors that may
cause future results to differ materially from those expressed or implied in
such forward-looking statements. Such risk factors may include, among others,
that that mineral resources are not as estimated, unexpected variations in
mineral resources, grade or recovery rates, actual results of exploration
activities will be different than anticipated, data and assumptions underlying
the geological interpretations may prove to be inaccurate, incomplete or to have
been incorrectly interpreted, that the Company will not be able to obtain the
necessary supplies, equipment, personnel and any financing required to carry out
its planned activities. Readers are also encouraged to review all Company
documents filed with the securities authorities in Canada, including the
Management Discussion and Analysis in respect of the Company's recent financial
statements under the heading "Operational and Other Business Risks", which
documents describe material factors and assumptions and risks that apply to the
forward looking statements in this release. Readers are cautioned not to place
undue reliance on forward-looking statements. The Company does not intend, and
expressly disclaims any intention or obligation to, update or revise any
forward-looking statements whether as a result of new information, future events
or otherwise, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) has reviewed or accepts
responsibility for the adequacy or accuracy of this release.
For more information, please visit www.euromaxresources.com.
APPENDIX A
Geology & Resources - The Ilovitza porphyry system is located in southeast
Macedonia, within the tertiary belt associated with the Carpathian arc. The
intrusive is about 1.5 km in diameter and comprises a dacite-granodiorite plug,
emplaced along the northeastern border of the Strumica graben. Mineralisation is
typical porphyry style veining, most intense within the potassic zone. The
mineralisation shows good continuity and homogeneity that lends itself well to
bulk-mining methods. The current pit-constrained Mineral Resources for the
property, details of which were announced on the 3 December 2013 can be
summarised as follows:
Mineral Resource (Effective 27 November 2013)
----------------------------------------------------------------------------
Grade Contained Metal
----------------------------------------
Classification Tonnage (Kt) Au (g/t) Cu (%) Au (Koz) Cu (Klb)
----------------------------------------------------------------------------
Sulphide (based upon a dollar equivalent cut-off of $16/t.)
----------------------------------------------------------------------------
Measured 18,440 0.34 0.22 200 88,677
----------------------------------------------------------------------------
Indicated 218,640 0.33 0.22 2,341 1,036,427
----------------------------------------------------------------------------
Total M+I 237,080 0.33 0.22 2,541 1,125,104
----------------------------------------------------------------------------
Inferred 19,850 0.36 0.22 226 96,942
----------------------------------------------------------------------------
Oxide (based upon a dollar equivalent cut-off of $8/t.)
----------------------------------------------------------------------------
Measured 1,340 0.38 - 16 -
----------------------------------------------------------------------------
Indicated 34,540 0.33 - 365 -
----------------------------------------------------------------------------
Total M+I 35,880 0.33 - 381 -
----------------------------------------------------------------------------
Inferred 6,750 0.25 - 55 -
----------------------------------------------------------------------------
Notes:
1. Dollar equivalent cut-off based upon the following calculation Dollar
Eq. = (Au x recovery x price) + (Cu x recovery x price), using the
following inputs:
- Au process recovery in oxide 86% based on early test work
- Cu process recovery in oxide 0% based on early test work
- Cu process recovery in fresh 85% based on early test work
- Au process recovery in fresh 65% based on early test work
- Spot metal prices effective 19 August 2013 (Au = US$1,366/oz, Cu =
US$3.30/ lb)
2. Resource cut-off of US$16 used for sulphide material
3. Resource cut-off of US$8 used for oxide material
4. Numbers may not add exactly due to rounding
5. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources may
be materially affected by environmental, permitting, legal, title,
taxation, socio-political, marketing, or other relevant issues. The
mineral resources in this news release were estimated using current
Canadian Institute of Mining, Metallurgy and Petroleum ("CIM")
standards, definitions and guidelines.
6. For additional information on key assumptions, parameters and methods
used to estimate the mineral resources and mineral reserves, including
quality assurance measures and other technical information in respect
of Ilovitza, please refer to our technical report entitled "Resource
Update on the Ilovitza Project, Macedonia" and with an effective date
of 27 November 2013.
Mining & Reserves - Mining is planned via conventional open pit methods using a
large scale mining fleet that enables bulk-mining at a rate of 10 million tonnes
a year. The good continuity of grade in the main mineralised areas enables
mining to be carried out at a low average strip-ratio of 0.7:1. Ore will be
crushed with a gyratory crusher at the pit exit before being transported to the
mill by conveyor. With the completion of the PFS, the Company is pleased to
announce a new Mineral Reserve for the project which is summarised in the table
below:
Mineral Reserve (Effective June 2014)
----------------------------------------------------------------------------
Grade Contained Metal
----------------------------------------
Classification Tonnage (Kt) Au (g/t) Cu (%) Au (Koz) Cu (Klb)
----------------------------------------------------------------------------
Sulphide (Fully Diluted)
----------------------------------------------------------------------------
Probable 208,650 0.34 0.20 2,276 905,100
----------------------------------------------------------------------------
Oxide (Fully Diluted)
----------------------------------------------------------------------------
Probable 16,230 0.33 - 172 -
----------------------------------------------------------------------------
Notes:
1. Sulphide mill cut-off of 0.3 g/t gold equivalent based upon the
following calculation:
- Recovered gold equivalency based on = (recovery x Au grade) + ((Cu
grade x recovery x copper price)/ gold price)
- Au and Cu process recoveries of 90% based on early test work
- Mining recovery 95%
- Mine dilution 5%
- Metal prices Au = US$1,250/oz, Cu = US$3.00/lb)
- Assumed process cost per in-situ tonne US$8.05
2. Oxide mill cut-off of 0.25 g/t gold upon the following calculation:
- Recovered gold based on = (recovery x Au grade)
- Au process recovery 90% based on early test work
- Mining recovery 95%
- Mine dilution 5%
- Metal prices Au = US$1,250/oz, Cu = US$3.00/lb)
- Assumed process cost per in-situ tonne US$6.90
Processing - Ore will be milled by SAG and Ball mills and then processed by a
concentrator using conventional flotation to produce a copper-gold concentrate
with the flotation tailings being re-treated to recover further gold dore on
site. Test work conducted by SGS Mineral Services in the UK has confirmed an
overall process recovery of 86.5% for gold and 84% for copper and the PFS study
is based on shipping concentrate to the Pirdop smelter in Bulgaria.
Tailings - Waste rock from the open pit will be used to construct the tailings
embankment. Whilst the mining operation does not require significant
pre-stripping, some 10Mt of inert waste rock mining has been brought forward in
schedule to the construction period for a starter dam. The dam will then be
raised over the mine life using the down-stream construction approach. A crusher
will be located at the embankment site in order to allow engineered fill to be
placed on the upstream face, which will also be lined. The plant site is
situated above the tailings facility and thickeners will be utilised to produce
a thickened tailings to be pumped to the facility below.
Infrastructure - A site plan has been developed covering haul roads, workshops,
access roads from the National Highway, water balance pumping scheme and power
infrastructure from the main 110kV supply some 7 kilometres from the plant have
been developed for the project using Macedonian and European rates.
Capital Costs - Capital Cost estimates were developed using quotations for
mobile and plant equipment and engineering studies carried out to at least
pre-feasibility industry standards. The Capital Cost Summary is include in the
table below:
Capital Cost Summary
----------------------------------------------------------------------------
Description (US$ million) Initial Capex Sustaining Capex
----------------------------------------------------------------------------
Mining Fleet (incl. conveyor) 34.8 128.0
----------------------------------------------------------------------------
Processing Plant 249.5 (in opex)
----------------------------------------------------------------------------
Owners costs 10.0 -
----------------------------------------------------------------------------
Infrastructure 103.8 30.6
----------------------------------------------------------------------------
Tailings (incl. pre-strip) 58.1 47.5
----------------------------------------------------------------------------
Reclamation (end of mine life) - 30.0
----------------------------------------------------------------------------
Sub-total 456.2 236.1
----------------------------------------------------------------------------
Contingency (10%) 45.6 -
----------------------------------------------------------------------------
Total 501.8 236.1
----------------------------------------------------------------------------
Operating Costs - Operating costs were derived from quotations for fuel, power,
consumables and reagents from suppliers in Macedonia and internationally where
local costs were not verifiable and local and international labour costs as
appropriate. The Operating Costs estimate is included in the table below:
Operating Cost Summary
----------------------------------------------------------------------------
Mining - Average LOM cost (US$/t ore)
----------------------------------------------------------------------------
Mining - Oxide (incl. rehandle cost) 1.96
----------------------------------------------------------------------------
Mining - Sulphide 1.72
----------------------------------------------------------------------------
Mining - Waste (excl. pre-strip) 1.59
----------------------------------------------------------------------------
Conveyor 0.10
----------------------------------------------------------------------------
Processing
----------------------------------------------------------------------------
Oxide Processing 5.23
----------------------------------------------------------------------------
Sulphide Processing 6.50
----------------------------------------------------------------------------
Infrastructure opex 0.29
----------------------------------------------------------------------------
G&A 1.00
----------------------------------------------------------------------------
Financial Analysis - The PFS demonstrates a robust NPV at a 5% discount of
US$675 million with an IRR of 19% before tax and an after tax NPV at a 5%
discount of US$558 million and after tax IRR 16%. The following table
illustrates the sensitivity to changes to the calculated IRR and NPV at 0%, 5%
and 7.5% discount rates at various gold and copper prices. No assurance or
guarantee is provided that the calculated IRR or NPV values will be achieved.
Pre-tax NPV and IRR sensitivity to metal prices
----------------------------------------------------------------------------
NPV @ 0% NPV @ 5% NPV @ 7.5%
Gold Copper discount discount discount Pre-tax IRR
(US$/oz) (US$/lb) (US$ m) (US$ m) (US$ m) (%)
----------------------------------------------------------------------------
1,100 2.50 757.5 284.3 146.4 11.4%
----------------------------------------------------------------------------
1,250 3.00 1,420.8 675.1 459.0 18.6%
----------------------------------------------------------------------------
1,400 3.50 2,084.0 1,066.0 771.6 24.9%
----------------------------------------------------------------------------
FOR FURTHER INFORMATION PLEASE CONTACT:
Euromax Resources Ltd.
Steve Sharpe
President & CEO
+44 (0)20 3667 2970
ssharpe@euromaxresources.co.uk
Euromax Resources Ltd.
Karen Coke
Investor Relations Manager
+44 (0)20 3667 2970
kcoke@euromaxresources.co.uk
Euromax Resources Ltd.
Tom Panoulias
N. American Representative
+1 416 294 5649
tpanoulias@euromaxresources.co.uk
www.euromaxresources.com
Buchanan
Bobby Morse
+44 (0)20 7466 5000
bobbym@buchanan.uk.com
Buchanan
Louise Mason
+44 (0)20 7466 5000
louisem@buchanan.uk.com
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