LONDON (Thomson Financial) - Cambridge Mineral Resources Plc. said a
feasibility study on the Rasuhuilca silver-gold project in Peru shows the mine
has the potential to yield 1,000,000 ounces of silver and 15,000 oz of gold over
its five-year initial planned life, generating after tax profits of about $9
million.
The study indicates estimated project development costs of circa $3.1
million over a five-month period, with mine development likely to be completed
within 12 months, the company said in a stock exchange statement.
Cambridge Mineral also said the project has the potential to expand and
convert additional resources to mineable reserves, adding significant benefits
to its overall economics.
Silver is currently anticipated to be produced at a full capital depreciated
cost of under $8 per troy ounce, it said. Silver was last trading in London at
about $14.68 per ounce.
The company said it is currently examining various options to advance the
project and plans to extend the life of the mine.
Managing director Colin Andrew said Rasuhuilca will "serve as an additional
profit stream to augment revenues expected to commence at the end of the year
from our Quintana gold mine development in Colombia."
TFN.newsdesk@thomson.com
ran/cmr
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