A preliminary economic assessment (PEA) for the Rovina Valley Project was completed in April 2010 by a consortium of engineering companies led by PEG Mining Consultants Inc., based in Ontario, Canada.
Highlights from the PEA include:
- Avg. annual gold production: 196,000 oz over 19 years
- First 5 years of production: 238,000 oz gold, and 53.5 Mlbs. annually
- Total of 3.72 Moz of recoverable gold over the life-of-mine (6.22 M AuEq)
- Total cash costs of $379/oz Au with copper as a by-product credit, and US $483/oz Au on a co-product basis (Copper cash cost is US $1.05 on a co-product basis)
- Pre-tax NPV (8% disc.) of $316 million ($900/oz Au and $2.25/lb Cu – base case)
- Pre-tax NPV (8% disc.) of $731 million ($1,000/oz Au and $3.00/lb Cu)
- Pre-tax IRR of 15.7%; 4.9 year payback ($900/oz Au and $2.25/lb Cu – base case)
- Pre-tax IRR of 24.2%; 3.3 year payback ($1,000/oz Au and $3.00/lb Cu)
- Pre-production CAPEX of $509.4 million ($1,000/oz Au and $3.00/lb Cu)
- Strip ratio of 2:1
- Process does not require the use of cyanide
*PEA based on a mineral resource estimate released in November 2008 (193.1Mt at 0.49 g/t Au and 0.18% Cu for 3.07 Moz Au and 759.1 Mlbs Cu in the M&I categories and 177.7 Mt at 0.68 g/t Au and 0.17% Cu for 3.89 Moz Au and 663.1 M lbs. Cu in the Inferred category. See link to the technical report below for further detail.April 23, 2010 - Rovina Valley Project, NI 43-101 Preliminary Economic Assessment
Euro Sun Mining is currently undertaking project scale trade-off studies to evaluate scalable mine scenarios that would initially target the higher-grade deposit cores.