Euro Sun Mining Inc. (TSX: ESM) (“Euro Sun” or the
“Company”) is pleased to announce it has filed the National
Instrument 43-101 compliant technical report supporting 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 (the
“Technical Report”). Included in the Technical Report is an updated
mineral resource estimate and the maiden mineral reserve statement
for the open pit deposits, namely Colnic and Rovina, incorporating
feasibility level operating parameters and metal price update for
the resources. All amounts are in US dollars unless otherwise
indicated.
The Technical Report titled NI 43-101
TECHNICAL REPORT ON THE ROVINA VALLEY PROJECT IN ROMANIA
dated April 14, 2021 was prepared by Nicholas Dempers, Principal
Process Engineer, New SENET Pty; David Thompson, Principal Mining
Engineer DRA Projects (PTY) Ltd; Sivanesan Subramani, B.Sc. Geo,
Caracle Creek International Consulting MINRES; Robert Cross,
P.Eng., P.Geo. Geological Engineer Klohn Crippen Berger (KCB)
(Canada); Carlos Diaz, MASc, B.Eng., KCB Canada; Andrew Hovey, BSc
Earth Sciences, RPGEO, KCB, Brisbane; Richard Lawrence B.Sc, Phd,
Lawrence Consulting Ltd; Kevin Leahy, BSc (Hons), PhD, CGeol, SiLC
Technical Director, Environmental Resource Management Ltd.
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, “With the
filing of the NI 43-101 compliant study, Euro Sun can now begin
detailed project finance discussions with international banks and
credit funds as well as off-take agreements with smelters to
optimize the funding package for our initial phase of development
at the Rovina Valley Project. We have initiated our Strategic
Environmental Assessment this month and look forward to providing
ongoing updates on the advancement in permitting relating to all
associated approvals required to begin construction.”
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 can be found on the Company’s website at
www.eurosunmining.com and under the Company’s profile on SEDAR
at www.sedar.com.
In connection with the filing of the Technical
Report, the Company has also filed an amended and restated annual
information form dated April 14, 2021, which now references the
Technical Report and updates certain non-material information found
under the heading “Mineral Projects – Environmental” and includes
an updated risk factor under the heading “Environmental and other
Regulatory Requirements”.
Qualified Persons
Mr. Nicholas Dempers, Principal Mining Engineer,
New Senet Pty who is an independent Qualified Person as defined
under NI 43-101, has reviewed and approved the technical
information pertaining to the Technical Report disclosed in this
press release.
The mineral resource update referred to 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. S Subramani was responsible for the mineral
resource estimate of the Feasibility Study.
Mr. Randy Ruff, P. Geo, an employee of Euro Sun
and a qualified person as defined 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 technical contents of this press
release.
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 initial rate of return)
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, environmental risks , expected plans for the
Ciresata underground deposit, and expected plans for seeking
funding for the Rovina Valley Project.
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 but not limited to: (1) there being no
significant disruptions affecting the Company’s operations whether
due to extreme weather events and other or related natural
disasters, economic 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; (7) labor and materials costs increasing on a
basis consistent with the Company’s current expectations; and (8)
the availability of funding for the Rovina Valley Project being
consistent with the 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, 2020 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.
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