Positive Results from the Berong Heap Leach Concept Study
Toledo Mining Corporation plc ("Toledo" or the "Company") (AIM:TMC)
is pleased to announce the results of a concept study into the
economic viability of heap leach processing at the Berong nickel mine
in the Philippines (the "Concept Study") conducted by European
Nickel's original Caldag project team.
Toledo has a 56.1% economic interest in Berong Nickel Corporation and
European Nickel has a direct interest of 18.7%, with the remaining
25.2% held by Atlas Consolidated Mining and Development Corporation.
Additionally, European Nickel holds a 19.3% stake in Toledo.
The Concept Study concludes that a heap leach project is economically
viable at Berong and has a competitively priced capital cost of
US$7.62 per annual pound of nickel. The Concept Study, conducted by
the original European Nickel Caldag project team, was based on a
pre-JORC* resource of 275 million tonnes at around 1.3% nickel at
Berong to produce 25,000 tonnes per annum of nickel in a mixed
hydroxide product at a cash cost of US$2.99 per pound of nickel,
including cobalt by-product credits, over a 33 year life of mine. A
suitable, large flat area has been identified close to the existing
mine and related infrastructure for the commercial scale heaps. The
capital cost has been estimated at US$420 million and includes port
and infrastructure upgrades.
Based upon these parameters and a long term nickel price of $6.25 per
pound, the Concept Study estimates that the project has a net present
value (NPV) of $625 million (using a discount rate of 10%) and an
ungeared internal rate of return of 25%.
Commenting on the Concept Study, George Bujtor, CEO of Toledo, said
"This study is an important first step towards our objective of
implementing value added processing at Berong. Trials continue at
European Nickel's project sites and we hope to start construction of
our own bulk sample heap leaches before year end, after obtaining the
necessary approvals."
Toledo and European Nickel will together soon start work on a
pre-feasibility study to demonstrate the viability of the project to
a higher degree of confidence.
Meanwhile, Berong will seek the necessary regulatory approvals, to
prove up a JORC compliant resource base to underpin this project.
* This resource figure is not compliant with JORC but is based on
work done originally by Altas Mining during the 1970's, including
drilling and test pitting at between 200 metres and 400 metres
spacing.
The technical information contained in this announcement has been
reviewed by George Bujtor, Chief Executive Officer of Toledo Mining
plc. Mr Bujtor is a member of the Australasian Institute of Mining
and Metallurgy and a qualified person for the purposes of the AIM
Guidance Note for Mining, Oil and Gas Companies.
For further information, contact:
Reg Eccles, Chairman, Toledo Mining Corporation plc +44 (0) 20 7514
1480
Hugh Oram, Ambrian Capital plc +44 (0) 20 7634 4700
Alex Buck, BuckBias Limited +44 (0) 20 7244 8053
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