Euro Sun Mining Inc. (TSX: ESM) (“Euro Sun” or the
“Company”) is pleased to announce the positive results of the
Definitive Feasibility Study (“DFS”) on the Colnic and Rovina open
pits - the initial phase of development of its Rovina Valley Gold
and Copper Project (the “Rovina Valley Project”) in Romania. Along
with the DFS, the Company is also providing an updated mineral
resource estimate for the Rovina Valley Project incorporating
current metal prices and operating parameters. All amounts are in
US dollars unless otherwise indicated.
Euro Sun is utilizing a phased development
approach for the Rovina Valley Project. The Rovina Valley Project
consists of two open pit gold-copper deposits, Colnic and Rovina,
and the underground Ciresata gold-copper deposit. The DFS
is focused on the exploitation of the two open pit
operations. The Ciresata underground deposit is expected
to be phased in following the completion of the Colnic and Rovina
pits.
HIGHLIGHTS
- Average annual gold
equivalent production of 146,000 ounces in year 1-10, consisting of
106,000 ounces of gold and 19 million pounds of copper per
annum
- Average AISC of $790/gold
equivalent ounces in years 1-10
- Initial capex is expected
to be $399 million (including $12.7 million in
pre-strip)
- Pre-Tax NPV5% of $447
million with an IRR of 21.3% and Post-Tax NPV5% of $359 million
with an IRR of 19.2% at $1,550/oz gold and $3.30/lb
copper
- Processing 21,000 tonnes
per day incorporating simple flotation and dry stack
tailings
- Phase 1 production of over
1.3 million ounces of gold and 400 million lbs of copper (185k
tonnes) over 16.8 years
Scott Moore, Euro Sun’s CEO states, “The 2021
Definitive Feasibility Study highlights a positive economic project
for our initial phase of development at the Rovina Valley Project.
An expanded life of mine to almost 17 years coupled with a
conservative metal price model has delivered an NPV almost 100%
higher than the PEA of 2019. The DFS delivers a much higher degree
of confidence in both the capital required to build the project and
the operating costs, even when utilizing higher cost dry stacking.
At spot copper and gold prices, the NPV almost doubles again
highlighting the enormous leverage of the Rovina Valley
Project.”
Table 1: Definitive Feasibility Highlights
DFS Phase 1 Highlights |
Life of Mine |
First 10 Years |
Gold price |
$1550/oz |
Copper price |
$3.30/lb |
Processing Rate |
21,000 tonnes per day |
Mine Life |
16.8 Years |
|
Average annual gold equivalent production |
132,000 ounces |
146,000 ounces |
Average annual gold production |
81,000 ounces |
106,000 ounces |
Average annual copper production |
24.3 million pounds |
19 million pounds |
All-in sustaining costs |
$813/oz Au eq |
$790/oz Au eq |
|
|
|
Pre-strip Capital |
$12.7 million |
|
Initial Capital |
$386.6 million |
|
Total Initial Capital |
$399.2 million |
|
Sustaining Capital |
$47.7 million |
|
|
|
|
Pre-Tax NPV (5% discount rate) |
$447 million |
|
Pre-Tax IRR |
21.3% |
|
Post-Tax NPV (5% discount rate) |
$359.3 million |
|
Post-Tax IRR |
19.2% |
|
The technical report related to the DFS results
will be filed on SEDAR within 45 days, in accordance with National
Instrument 43-101 (“NI 43-101”) The study has been prepared with
input from the following independent consultants:
Caracle Creek International Consulting MINRES – CCIC (South
Africa) |
Mineral resources |
DRA (South Africa) |
Mining, mineral reserves |
ERM (Romania) |
Environmental and social |
Klohn Crippen Berger (KCB) (Canada) |
Tailings facilities, Geotechnical and Hydrogeology |
Lawrence Consulting (Canada) |
Geochemistry |
SENET (South Africa) |
Processing plant and infrastructure |
SENET and Sidus Consulting |
Economic valuation / financial modelling |
Rovina Valley Gold-Copper Project Overview
The Rovina Valley Project is situated in the
Hunedoara county of Transylvania in western – central Romania. The
Rovina Valley Project consists of three deposits, Rovina to the
North, Colnic Central and the Ciresata deposit to the south. The
DFS only incorporates with the Rovina and the Colnic deposits while
the Ciresata deposit can be brought into the project for
development later. The Rovina exploration licence is held by Samax
Romania S.R.L a Romanian registered company which is a wholly owned
subsidiary of ESM. Since November 2018, ESM has possessed an
exploitation permit and mining licence with a renewable 20-year
validity.
The Colnic and Ciresata deposits are described
as gold-copper porphyries while the Rovina deposit is termed a
copper-gold porphyry. All three of these deposits are located such
that they can access a central processing plant. The Rovina Valley
Project processing facility is being designed to produce a gold and
copper concentrate from the Colnic and Rovina deposits.
The Rovina Valley Project is within the Golden
Quadrilateral Mining District of the South Apuseni Mountains, an
area with a history of mining dating back to Roman times. This has
supported the development of excellent infrastructure including
rail, power and paved access roads. In addition, there are two
international airports less than 180km from the project location.
These being in the cities of Timisoara and Sibiu. The town of Brad
is within 5km of the project site from where there will be a good
source of local skilled labour. Sourcing the right skills and
resources locally supports ESM community upliftment
opportunities.
The Rovina Valley Project is planned to be mined
with a standard open-pit mining method using articulated trucks and
a hydraulic loader. The open pit mining operation is anticipated to
last approximately sixteen and a half years, during which the
lower-grade material will be stockpiled on a pad close to the
primary crusher location for treatment over another eighteen
months.
Over the life of the project, it is expected
that 133.4 Mt of ore will be mined. Of this ore, 119.4 Mt will be
delivered to the processing facility and 14 Mt low grade ore
stockpiled for future processing. A total of 246.7 Mt of material
will be mined and placed on the waste facility, representing a life
of mine stripping ratio of 1.85:1.
Tailings Management
KCB have designed a waste management facility
within the project area for the co-deposition of waste rock and
filtered rougher tailings. Process plant rougher tailings will be
filtered in the plant where the resultant filter cake will be
transported by conveyors and will be co-mingled with waste rock
prior to deposition. The cleaner tails will be filtered separately
from the rougher tailings and the resultant filter cake will be
transported by conveyors and deposited separately within a lined
zone contained within the boundary of the co-mingled facility and
will be stored separately in a lined zone of the waste management
facility. This design has been engineered to reduce the risk of
development of impacted seepage from potentially acid generating
waste rock and capture the impacted seepage from the cleaner
tailings. After completion of mining the Colnic pit, the waste rock
and rougher tailings will be preferentially backfilled into the
Colnic pit, while the cleaner tails will continue to report to the
lined zone of the waste management facility.
Capital Costs
The estimated capital costs for the Rovina
Valley Project were in almost all cases built up from quotations
and proposals from equipment and service providers. The DFS costs
currently utilize an owner purchased and operated mining fleet. All
financial analysis for the Life of Mine includes the total design,
construction and commissioning, production, and closure.
Project Opportunities
The DFS has been completed based upon the
development of the Colnic and Rovina pits only. Further developing
and treating the resource at Ciresata could further extend the life
of the operation while utilising the same infrastructure and
processing capabilities already in operation.
Rovina Valley Project 2021 Resource Update
Three porphyry deposits, Rovina (Cu-Au), Colnic
(Au-Cu), and Ciresata (Au-Cu), from north to south, comprise the
Rovina Valley Project and lie within Euro Sun’s 100% owned Rovina
Mining License in west-central Romania. All three deposits
are in close proximity and, given similar metallurgy, can be
treated at a central processing facility. Colnic and
Rovina are amenable to open-pit mining and are included in the
current 2021 DFS, and Ciresata is envisioned as a bulk underground
mining operation and will be evaluated for its economic potential
in a later study.
Euro Sun is releasing an updated National
Instrument (NI) 43-101 compliant mineral resource estimate ("2021
Resource Estimate") as provided by independent consultants CCIC
(Geology) and DRA (Engineering) for the Colnic and Rovina deposits
and included a detailed technical review of the resource models.
The 2021 Resource Estimate updates the NI 43-101 compliant 2019
Resource Estimate on the Rovina and Colnic deposits completed by
AGP Mining Consultants Inc. (Technical Report filed on SEDAR:
Rovina Valley Project, Preliminary Economic Assessment, NI 43-101,
Feb. 20, 2019) primarily to reflect the updated operating
parameters used in the DFS and higher metal prices on resource
constraining Lerchs-Grossman algorithm pit optimizer using
appropriate cut-off grades. The geologic model and interpolated
block models for Colnic and Rovina are not changed in this current
estimate.
Mineral resources were estimated in conformance
with the CIM Mineral Resource and Mineral Reserve definitions
referred to in NI 43-101 and are considered to have reasonable
prospects for economic extraction. The technical report related to
the mineral resource estimate shown below will be filed on SEDAR at
www.SEDAR.com within 45 days.
Qualified Persons
The mineral resources results stated in this press release have
been reviewed and approved by Mr. Sivanesan (Desmond) Subramani
(Pri. Sci. Nat - 400184/06), Principal for Mineral Resources at
Caracle Creek International Consultants, who is an independent
Qualified Person as defined by National Instrument 43-101. Mr. D
Subramani was responsible for the mineral resource estimate of the
Feasibility Study. Mr. D Subramani confirmed that he has reviewed
the information in this press release as it relates to the mineral
resource estimate.
Table 2: Rovina Valley 2021 Mineral Reserve
Estimate Colnic and Rovina Deposits
Deposit |
Classification |
Tonnage (Mt) |
Au(g/t) |
Cu (%) |
Au(koz) |
Cu(t) |
Colnic |
Proven |
24.27 |
0.64 |
0.11% |
500.5 |
26 860.9 |
Probable |
49.49 |
0.52 |
0.08% |
828.7 |
41 004.7 |
Rovina |
Proven |
24.01 |
0.32 |
0.28% |
247.8 |
67 469.3 |
Probable |
35.62 |
0.22 |
0.20% |
249.5 |
72 896.1 |
Colnic & Rovina |
Proven |
48.28 |
0.48 |
0.20% |
748.3 |
94 330.2 |
Probable |
85.11 |
0.39 |
0.13% |
1 078.2 |
113 900.8 |
Total |
Proven & Probable |
133.40 |
0.43 |
0.16% |
1 826.5 |
208 231.0 |
The Mineral reserve estimate uses a base gold price of $1,500/oz
and a base copper price of $3.00/lb
Notes:
- All tonnes quoted are dry tonnes.
Differences in the addition of deposit tonnes to the total
displayed is due to rounding.
- The estimate of Rovina
Valley Gold Project Mineral Reserves are not at
this stage materially affected by any known environmental,
permitting, legal, title, taxation, socioeconomic, marketing,
political, or other relevant issue. Furthermore, the estimate
of Project Reserves is not materially affected
by any known mining, metallurgical, infrastructure, or other
relevant factor.
- Mineral Reserve estimates follow
the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM")
definitions standards for Mineral Resources and Reserves and have
been completed in accordance with the Standards of Disclosure for
Mineral Projects as defined by National Instrument 43-101.
Table 3: Rovina Valley 2021 Mineral
Resource Estimate Colnic and Rovina Deposits
Deposit |
Classification |
Tonnage(Mt) |
Au(g/t) |
Cu(%) |
Au(Moz) |
Cu(Mlb) |
Au Eq*(g/t) |
Au Eq*(Moz) |
Colnic |
Measured |
29.1 |
0.65 |
0.12 |
0.61 |
77 |
0.82 |
0.77 |
Indicated |
97.5 |
0.49 |
0.10 |
1.53 |
215 |
0.63 |
1.98 |
Rovina |
Measured |
33.1 |
0.36 |
0.29 |
0.38 |
212 |
0.77 |
0.82 |
Indicated |
78.1 |
0.26 |
0.22 |
0.66 |
379 |
0.57 |
1.43 |
Colnic & Rovina |
Measured |
62.2 |
0.50 |
0.21 |
0.99 |
289 |
0.79 |
1.58 |
Indicated |
175.6 |
0.39 |
0.15 |
2.19 |
594 |
0.60 |
3.41 |
Total |
Measured & Indicated |
237.8 |
0.42 |
0.17 |
3.18 |
882 |
0.65 |
4.99 |
Notes:
- *Au and Cu Equivalent determined by
using a long-term gold price of US$1,700/oz and a copper price of
US$3.50/lb with metallurgical recoveries not taken into
account.
- Mineral Resources are reported
inclusive of Mineral Reserves. Mineral Resources that are not
Mineral Reserves do not have have demonstrated economic
viability.
- Mineral Resources are contained
within a conceptual pit shells that are generated using the same
economic and technical parameters as used for Mineral Reserves but
at gold price of US$1,700/oz and a copper price of US$3.50/lb.
- Colnic and Rovina deposits are
amenable to open pit mining and Mineral Resources are Pit
constrained and tabulated at a base case cut-off grade of 0.35 g/t
AuEq for Colnic and 0.25 % CuEq for Rovina
- Minor summation differences may
occur, as a result of rounding.
- Mineral Resource estimates follow
the CIM definition standards for Mineral Resources and Reserves and
have been completed in accordance with the Standards of Disclosure
for Mineral Projects as defined by National Instrument 43-101.
|
Table 4: Rovina Valley 2019 Mineral
Resource Estimate Ciresata Deposit
Deposit |
Classification |
Tonnage(Mt) |
Au(g/t) |
Cu(%) |
Au(Moz) |
Cu(Mlb) |
Au Eq*(g/t) |
Au Eq*(Moz) |
Ciresata |
Measured |
28.5 |
0.88 |
0.16 |
0.81 |
102 |
1.13 |
1.03 |
Indicated |
125.9 |
0.74 |
0.15 |
3.01 |
413 |
0.97 |
3.92 |
Total |
Measured & Indicated |
154.4 |
0.77 |
0.15 |
3.82 |
515 |
1.00 |
4.95 |
Notes:
- From Table 14-20, Technical Report
“Rovina Valley Project, Preliminary Economic Assessment, NI 43-101,
Feb. 20, 2019 “ from AGP Mining Consultants Inc (available on
SEDAR)
- Au and Cu Equivalent determined by
using a long-term gold price of US$1,500/oz and a copper price of
US$3.50/lb with metallurgical recoveries not taken into
account.
- The Ciresata deposit is amenable to
bulk underground mining and resources are tabulated at a base case
0.65 g/t Au eq.
- No Mineral Reserves have been
defined at the Ciresata deposit. Mineral Resources that are not
Mineral Reserves do not have demonstrated economic viability.
- Minor summation
differences may occur, as a result of rounding.
- Mineral Resource
estimates follow the CIM definition standards for Mineral Resources
and Reserves and have been completed in accordance with the
Standards of Disclosure for Mineral Projects as defined by National
Instrument 43-101.
|
On a consolidated basis of measured and indicated
resources, the Rovina Valley Project includes 392.2 Mt containing
6.98 Moz gold and 1,397 Mlbs copper equal to 9.94 M gold equivalent
ounces.
Mr. Randy Ruff, P.Geo, an employee of Euro Sun
and a qualified person as defined by NI 43-101 has also reviewed
and approved the contents of this press release relating to the
mineral resource estimation.
About Euro Sun Mining Inc.
Euro Sun is a Toronto Stock Exchange listed mining company
focused on the exploration and development of its 100%-owned Rovina
Valley gold and copper project located in west-central Romania,
which hosts the second largest gold deposit in Europe.
For further information about Euro Sun Mining,
or the contents of this press release, please contact Investor
Relations at info@eurosunmining.com
Caution regarding forward-looking
information:This press release contains statements which
constitute “forward-looking information” within the meaning of
applicable securities laws, including statements regarding the
plans, intentions, beliefs and current expectations of the Company
with respect to future business activities and operating
performance. Forward-looking information is often identified by the
words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”,
“anticipate”, “believe”, “estimate”, “expect” or similar
expressions and includes information regarding the Company’s
estimates, expectations, forecasts and guidance for production,
all-in sustaining cost, capital expenditures, cost savings, project
economics (including net present value) and other information
contained in the feasibility study; as well as references to other
possible events, the future price of gold and copper, the
estimation of mineral reserves and mineral resources, the
realization of mineral reserve and mineral resource estimates, the
timing and amount of estimated future production, costs of
production, capital expenditures, costs and timing of the
development of the project and mining and processing activities,
requirements for additional capital, government regulation of
mining operations, and environmental risks.
Investors are cautioned that forward-looking
information is not based on historical facts but instead reflect
management’s expectations, estimates or projections concerning
future results or events based on the opinions, assumptions and
estimates of management considered reasonable at the date the
statements are made. Although the Company believes that the
expectations reflected in such forward-looking information are
reasonable, such information involves risks and uncertainties, and
undue reliance should not be placed on such information, as unknown
or unpredictable factors could have material adverse effects on
future results, performance or achievements of the Company. This
forward-looking information may be affected by risks and
uncertainties in the combined business of the Company and market
conditions, including (1) there being no significant disruptions
affecting the Company’s operations whether due to extreme weather
events and other or related natural disasters, labor disruptions,
supply disruptions, power disruptions, damage to equipment or
otherwise; (2) permitting, development, operations and production
for the Rovina Valley Project being consistent with the Company’s
expectations; (3) political and legal developments Romania being
consistent with current expectations; (4) certain price assumptions
for gold and copper; (5) prices for diesel, electricity and other
key supplies being approximately consistent with current levels;
(6) the accuracy of the Company’s mineral reserve and mineral
resource estimates; and (7) labor and materials costs increasing on
a basis consistent with the Company’s current expectations. This
information is qualified in its entirety by cautionary statements
and risk factor disclosure contained in filings made by the Company
with the Canadian securities regulators, including the Company’s
annual information form, financial statements and related MD&A
for the financial year ended December 31, 2019 filed with the
securities regulatory authorities in certain provinces of Canada
and available at www.sedar.com.
Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking information prove incorrect, actual results may
vary materially from those described herein as intended, planned,
anticipated, believed, estimated or expected. Although the Company
has attempted to identify important risks, uncertainties and
factors which could cause actual results to differ materially,
there may be others that cause results not to be as anticipated,
estimated or intended. The Company does not intend, and does not
assume any obligation, to update this forward-looking information
except as otherwise required by applicable law.
The Company has included certain non-GAAP
financial measures in this press release, such as all-in sustaining
costs (“AISC”) per ounce of gold sold, net present
value (“NPV”). These non-GAAP financial measures
do not have any standardised meaning. Accordingly, these financial
measures are intended to provide additional information and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with International Financial
Reporting Standards (“IFRS”). AISC is a common
financial performance measure in the mining industry but has no
standard definition under IFRS. AISC includes operating cash costs,
net-smelter royalty, corporate costs, sustaining capital
expenditure, sustaining exploration expenditure and capitalised
stripping costs. Other companies may calculate these measures
differently and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS.
The TSX does not accept responsibility for the
adequacy or accuracy of this news release.
Euro Sun Mining (TSX:ESM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Euro Sun Mining (TSX:ESM)
Historical Stock Chart
From Apr 2023 to Apr 2024