The results from the PEA demonstrate the economic potential of the Zgounder Mine based on the Mineral resources estimate by GoldMinds Geoservices Inc. In addition, there remains excellent exploration potential to further expand the size of the existing Mineral Resource.
Highlights of the Zgounder Silver Mine PEA Study include:
A potential mining life of 10 years with the current resources;
First year silver production of 647,000 ounces, followed by a regular production of 1,027,000 ounces per year;
Very high mill feed grade estimated at 360 g/t Ag;
Total operating cost of USD113.50 per tonne (averaged over the expected mine’s life);
Additional capex requirements of USD3.8 million, including the concentrator expansion;
Internal rate of return of 174 per cent;
Net present value of USD65.9 million (discounted at 6.5 per cent) at silver price of USD22 per ounce;
The Zgounder PEA was prepared as a strictly underground mine related solely to the mineral resources reported on February 19, 2014.
Cautionary Statements
The PEA is preliminary in nature and includes the use of inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.
Thus, there is no certainty that the results stated in the PEA will be realized. Actual results may vary, perhaps materially. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
