Canplats Resources Corporation (TSX VENTURE: CPQ) is pleased to
announce the completion of a positive Preliminary Assessment on the
100%-owned Camino Rojo gold project located in Zacatecas state,
Mexico. The Preliminary Assessment was prepared by Mine and Quarry
Engineering Services Inc. ("MQes") of San Mateo, California, under
the direction of Mr. Christopher Kaye, an independent qualified
person under Canadian National Instrument 43-101 ("NI 43-101").
MQes has been engaged to complete a Prefeasibility Study for the
project.
The Preliminary Assessment supports open-pit, heap-leach mining
of oxide and transitional mineralization at the Represa deposit.
The study does not examine the extensive sulphide mineralization
that exists at Camino Rojo, which represents an additional
opportunity for Canplats and will be the subject of further
studies. Highlights of the Preliminary Assessment, using base case
prices of US$750 per ounce gold and US$13.50 per ounce silver,
are:
- Base case ultimate pit containing 1.71 million ounces gold and
34.2 million ounces silver (74.9 million tonnes grading 0.71 g/t Au
and 14.2 g/t Ag) with a low strip ratio of 0.7 to 1.
- Average annual production of 122,300 ounces of gold and
902,100 ounces of silver over a 10.4 year mine life at a net cash
operating cost of US$340 per ounce of gold (including silver
credits).
- Initial capital costs estimated at US$133.8 million.
- A pre-tax internal rate of return ("IRR") of 32.5% and a net
present value ("NPV") of US$194.9 million at a 5% discount rate,
increasing to 65.7% IRR and a US$477.2 million NPV at current metal
prices of US$1,036 per ounce gold and US$17.19 per ounce silver (as
of Oct. 6, 2009).
Table 1: Camino Rojo Preliminary Assessment - Financial Analysis
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Undiscounted NPV at
Cash Flow 5% Discount IRR
Price Gold Silver (millions US$) (millions US$) (%)
Scenario (US$/oz) (US$/oz) (ii) (ii) (ii)
-------------------- ----------------------------------------------------
Base Case 750 13.50 313.4 194.9 32.5
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850 15.30 457.5 296.8 44.7
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950 17.10 601.6 398.7 56.5
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Spot (i) 1,036 17.19 711.9 477.2 65.7
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(i) Source: www.kitco.com on Oct. 6, 2009
(ii) Amounts are on a Pre-Tax Basis
The Preliminary Assessment is based upon resources estimated by
Mr. Douglas Blanchflower, P.Geo., of Minorex Consulting in a 43-101
compliant technical report dated January 5, 2009 and entitled
"Technical Report on the Mineral Resources of the Camino Rojo
Property". Mr. Howard Steidtmann of MQes, an independent qualified
person under NI 43-101, used the Minorex resource estimate and Pit
Optimization Package (POP!) software to estimate in-pit resources
of 74.9 million tonnes grading 0.71 g/t Au and 14.2 g/t Ag
containing 1.71 million ounces gold and 34.2 million ounces silver.
These in-pit resources included only oxide and transitional
mineralization within measured and indicated classifications, and
excluded inferred resources and sulphide mineralization.
Table 2: Camino Rojo Preliminary Assessment Summary (i)(ii)(iii)
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Production Summary
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Processed Tonnes (iv) 74.9 million
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Average Gold Grade (iv) 0.71 g/t
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Average Silver Grade (iv) 14.2 g/t
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Processing Rate (Tonnes Per Day) 20,000
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Mine Life (Years) 10.4
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Weighted Average Gold Recoveries 75%
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Weighted Average Silver Recoveries 27%
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Average Annual Gold Production 122,300 Ounces
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Average Annual Silver Production 902,100 Ounces
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Estimated Costs
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Mining Cost - Life of Mine US$248.6 million
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Processing Cost - Life of Mine US$284.7 million
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G&A Cost - Life of Mine US$31.5 million
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Total Operating Costs - Life of Mine US$564.8 million
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Total Capital Cost Estimate US$133.8 million
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(i) All monetary values in U.S. dollars.
(ii) The PA is preliminary in nature and there is no certainty that
the PA will be realized. Mineral resources that are not mineral
reserves do not have demonstrated economic viability.
(iii) Base case metal prices of US$750 per ounce gold and US$13.50 per
ounce of silver were used
(iv) Material processed does not meet NI 43-101 requirements for
Ore (reserves)
A technical report entitled "Preliminary Assessment based on the
Report Titled Technical Assessment of the Camino Rojo Project,
Zacatecas, Mexico" and dated October 16, 2009 will be filed on
SEDAR and can be found on Canplats' web site.
The Camino Rojo project hosts measured and indicated resources
estimated using a 0.2 g/t gold grade cutoff for oxide and
transition materials and a 0.3 g/t gold grade cutoff for sulphide
materials to be 3.44 million ounces of gold and 60.7 million ounces
of silver at the Represa deposit with additional inferred resources
of 0.56 million ounces of gold and 7.6 million ounces of silver
(see Table 3 below).
The Represa deposit is situated in flat terrain within an area
of excellent infrastructure, less than 5 kilometers from a paved
highway and high voltage power lines. Canplats is actively pursuing
the acquisition of surface rights in the Represa area.
Mr. Christopher Kaye, an independent qualified person under NI
43-101 and principal author of the Preliminary Assessment, has
verified the data disclosed in this news release.
Table 3: Represa Deposit Mineral Resource Summary (i)
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Size Grade
---------------------------------------- Gold Silver
Tonnes Gold Silver Zinc Lead Ounces Ounces
Category (Millions) (g/t) (g/t) (%) (%) (000's) (000's)
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Measured 9.58 0.76 13.40 0.34 0.29 235 4,126
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Indicated 153.81 0.65 11.44 0.37 0.18 3,210 56,582
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Total M&I 163.39 0.66 11.56 0.37 0.19 3,445 60,708
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Inferred 31.03 0.56 7.63 0.31 0.10 555 7,612
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(i) Based upon a cut-off grade of 0.2 grams gold per tonne for oxide
and transitional resources, with a cut-off grade of 0.3 grams gold
per tonne for sulphide resources.
To receive Canplats' news releases by e-mail, contact Blaine
Monaghan, Director, Investor Relations, at info@canplats.com or
(866) 338-0047.
Statements contained in this news release that are not
historical fact, such as statements regarding the economic
prospects of the company's projects, future plans or future
revenues, timing of development or potential expansion or
improvements, are forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995 and
forward-looking information under the provisions of Canadian
securities laws (collectively, "forward-looking statements"). Such
forward-looking statements are subject to risks and uncertainties
which could cause actual results to differ materially from
estimated results. Such risks and uncertainties include, but are
not limited to, the company's ability to raise sufficient capital
to fund development, changes in economic conditions or financial
markets, changes in prices for the company's mineral products or
increases in input costs, litigation, legislative, environmental
and other judicial, regulatory, political and competitive
developments in Mexico, technological and operational difficulties
or inability to obtain permits encountered in connection with
exploration and development activities, labour relations matters,
and changing foreign exchange rates, all of which are described
more fully in the company's filings with the Securities and
Exchange Commission and on SEDAR.
Cautionary note to U.S. investors: The terms "measured mineral
resource", "indicated mineral resource", and "inferred mineral
resource" used in this news release are Canadian geological and
mining terms as defined in accordance with National Instrument
43-101, Standards of Disclosure for Mineral Projects ("NI 43-101")
under the guidelines set out in the Canadian Institute of Mining,
Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources
and Mineral Reserves. We advise U.S. investors that while such
terms are recognized and permitted under Canadian regulations, the
SEC does not recognize them. U.S. investors are cautioned not to
assume that any part or all of the mineral deposits in the measured
and indicated categories will ever be converted into reserves.
"Inferred mineral resources" in particular have a great amount of
uncertainty as to their economic feasibility. It cannot be assumed
that all or any part of an inferred mineral resource will ever be
upgraded to a higher category. Under Canadian rules estimates of
inferred mineral resources may not generally form the basis of
feasibility or other economic studies. U.S. investors are cautioned
not to assume that any part or all of an inferred mineral resource
exists, or is economically or legally mineable. Disclosure of
contained metal expressed in ounces is in compliance with NI
43-101, but does not meet the requirements of Industry Guide 7 of
the SEC, which will only accept the disclosure of tonnage and grade
estimates for non-reserve mineralization.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Canplats Resources Corporation - Corporate Information
R.E. Gordon Davis Chairman and C.E.O. Direct: (604) 629-8292
Canplats Resources Corporation - Corporate Information Bruce A.
Youngman President and C.O.O. Direct: (604)-629-8293 Canplats
Resources Corporation - Investor Inquiries Blaine Monaghan
Director, Investor Relations Direct: (604) 629-8294 or Toll-Free:
(866) 338-0047 (604) 683-8350 (FAX) info@canplats.com
www.canplats.com G2 Consultants Corporation - Investor Inquiries NA
Toll-Free: (866) 742-9990 or (604) 742-9990 (604) 742-9991 (FAX)
canplats@g2consultants.com
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