Positive Preliminary Economic Assessment for Colt's 100% owned
Tabuaço Tungsten Project, Northern Portugal
Trading Symbols:
GTP - (TSX-V)
P01 - (FRANKFURT)
COLTF - (OTCQX)
MONTREAL, Sept. 4, 2013 /CNW Telbec/ - Colt Resources Inc.
("Colt" or the "Company") (TSXV: GTP) (FRA: P01) (OTCQX: COLTF)
is
pleased to announce the results of a positive Preliminary
Economic
Assessment ("PEA") prepared by SRK Consulting (UK) Ltd ("SRK") for
the
100% Colt-owned Tabuaço Tungsten Project, located in Portugal. The
final PEA report will be filed on SEDAR within 45 days. The
PEA covers
the São Pedro das Águias (Tabuaço) tungsten deposit and the
nearby
Aveleira tungsten deposit, both located within the Company's
Tabuaço
Experimental Mining License (45 km2).
Nikolas Perrault, CEO and
President of Colt stated; "We are very pleased
with the results of this PEA prepared by SRK. It demonstrates
the
potential to develop this project with positive
economics. While
initiating the Feasibility Study, Colt's next phase of work
will
include upgrading the inferred resources to indicated resources
and
identifying additional resources in close proximity to the
known
deposits."
Preliminary Economic Assessment Summary
A PEA was prepared by SRK for Colt's 100% owned Tabuaço Tungsten
Project
in Portugal. The PEA relied
on NI43-101 compliant Indicated and
Inferred Mineral Resources as announced by Colt on October 3rd, 2012.
The main conclusions from the PEA are shown on Table 1. All values
are
in USD and the study assumes a USD 1.30/EUR exchange rate. A flat
tungsten price of USD 400/MTU
W03 was used in the economic assessment. Capital
and operating costs were
derived from a combination of first principles and SRK's
experience
based on similar projects.
The conclusions and recommendations of the PEA are that the
Tabuaço
Tungsten Project may be economically viable and that further
studies
and field work for this project are justified.
SRK notes that the economic assessment is preliminary in nature and
the
production schedules are inclusive of inferred classified
mineral
resources that are considered too geologically speculative to
have
economic considerations applied to them that would enable them to
be
classified as Mineral Reserves. There is no certainty that
the
preliminary economic assessment will be realized. Mineral
resources
that are not mineral reserves do not have demonstrated economic
viability.
Table 1: Summary of Preliminary Economic Assessment
results for Tabuaço
project, Portugal:
SRK Consulting (UK) Ltd.
|
Units
|
Results
|
PRODUCTION
|
|
|
Capital development
|
|
|
|
Lateral
|
(m)
|
5,949
|
|
Vertical
|
(m)
|
435
|
|
Waste mined
|
(kt)
|
398
|
Production
|
|
|
Production rate
|
(ktpa)
|
400
|
|
Ore Mined and Processed - SPA
|
(kt)
|
2,582
|
|
|
(% WO3)
|
0.37
|
|
Ore Mined and Processed - AVE
|
(kt)
|
975
|
|
|
(% WO3)
|
0.42
|
|
Ore Mined and Processed - TOTAL
|
(kt)
|
3,557
|
|
|
(% WO3)
|
0.39
|
Recovery
|
%
|
90.25
|
Recovered Metal
|
(MTU EQ WO3)
|
1,240,482
|
Mine Life
|
(years)
|
12
|
FINANCIAL
|
|
|
Revenue
|
(USDm)
|
496.2
|
Operating Costs
|
(USDm)
|
-244.6
|
Royalty
|
(USDm)
|
-5.0
|
Operating Profit
|
(USDm)
|
246.6
|
Net Operating Profit
|
(USDm)
|
196.0
|
Capital Expenditure
|
(USDm)
|
-86.8
|
Cashflow
|
(USDm)
|
109.2
|
Post-Tax Reporting
|
|
|
NPV @ 5%
|
(USDm)
|
67.4
|
IRR
|
(%)
|
30.7
|
Cash Cost
|
(USD/tore)
|
70.17
|
|
(USD/MTU WO3)
|
201.20
|
Metal Price Sensitivity Analysis
The impact of a range of tungsten prices on the NPV5%
for the project has been studied in the PEA and the results are
reported in Table 2.
Table 2: Tungsten Price Sensitivity Analysis
Results
|
Unit
|
|
|
|
|
Base
case
|
|
|
|
Metal Price
|
USD/MTU
|
300
|
325
|
350
|
375
|
400
|
425
|
450
|
475
|
NPV5%
|
USDm
|
3.6
|
19.6
|
35.5
|
51.5
|
67.4
|
83.3
|
99.2
|
115.2
|
Discount Rate Sensitivity Analysis
The impact of a range of discount rates on the NPV for the project
has
been studied in the PEA and the results are reported in Table
3.
Table 3: Discount Rate Sensitivity Analysis
Results
|
Unit
|
|
|
Base
case
|
|
|
|
|
|
|
Discount rate
|
USD/MTU
|
0.0%
|
2.5%
|
5.0%
|
7.5%
|
10.0%
|
12.5%
|
15.0%
|
17.5%
|
20.0%
|
NPV
|
USDm
|
109.2
|
85.8
|
67.4
|
52.7
|
41.0
|
31.7
|
24.1
|
17.9
|
12.9
|
Several processing options were evaluated for the Project and
the
economic assessment presented here is based on Colt's preferred
base
case, which uses ore sorting and an acid tungsten recovery process.
It
is noted that the planned trial mining will provide a bulk sample
for
further testwork to verify the flowsheet.
Project Timeline and Optimization Efforts
The completion of this positive PEA is an important milestone in
the
continued development of the Tabuaço Tungsten Project.
Colt's projected timeline to advance the project includes the
following
milestones:
Q4 2014
|
Completion of Resource Update / Feasibility Study
|
2015
|
Full Mine Permitting
|
2015/16
|
Construction
|
2017
|
Production
|
Colt intends to address several areas during the Feasibility Study
so as
to improve results included in the PEA. These will
include:
Mineral Resources - Colt will focus on upgrading of Inferred
Resources
to Indicated Resources and the identification of additional
resources
in close proximity to the known deposits. Colt is confident
that the
potential to increase resources through regional exploration is
good.
Exploration work will be directed toward identifying additional
resources that will benefit the future mining operation.
Trial Mining - Colt will develop an adit to the orebody to
determine the
geotechnical and mining conditions and to take a bulk sample
for
metallurgical testwork.
Processing - Colt will complete ongoing testwork so as to finalize
and
optimize process flowsheets leading to final plant design.
The study
analysed several options that will be further evaluated and
finalized.
Geotechnics - Colt will perform additional geotechnical
investigations
designed to determine the ground support requirements.
Environmental - Work will continue to address the need to minimize
the
impact of the future mining project.
Mining - Capital and operating costs will be confirmed and
addressed in
detail to identify areas where improvements can be made so as
to
benefit the future economics of the project. The mine design will
be
updated based on the updated resources.
About Colt Resources Inc.
Colt Resources Inc. (www.coltresources.com) is a Canadian mining
exploration and development company engaged in
acquiring, exploring, and developing mineral properties with an
emphasis on gold and tungsten. It is currently focused on
advanced
stage exploration projects in Portugal, where it is one of the largest
lease holders of mineral concessions.
Jurgen Fuykschot MSc MBA
MAusIMM (CP), Principal Consultant (Mining
Engineering), SRK Consulting (UK) Limited, is the independent
qualified
person, as defined in NI 43?101, for the Tabuaço Preliminary
Economic
Assessment. Mr. Fuykschot has reviewed the content of
this press
release and consents to the information provided in the form
and
context in which it appears.
The Company's shares trade on the TSX?V, symbol: GTP; the
Frankfurt
Stock Exchange, symbol: P01; and, the OTCQX, symbol: COLTF.
FORWARD-LOOKING STATEMENTS: Certain of the information contained
in this
news release may contain "forward-looking information".
Forward-looking
information and statements may include, among others,
statements
regarding the future plans, costs, objectives or performance of
Colt
Resources Inc. (the "Company"), or the assumptions underlying any
of
the foregoing. In this news release, words such as "may",
"would",
"could", "will", "likely", "believe", "expect", "anticipate",
"intend",
"plan", "estimate" and similar words and the negative form thereof
are
used to identify forward-looking statements. Forward-looking
statements
should not be read as guarantees of future performance or results,
and
will not necessarily be accurate indications of whether, or the
times
at or by which, such future performance will be achieved.
Forward-looking statements and information are based on
information
available at the time and/or management's good-faith belief
with
respect to future events and are subject to known or unknown
risks,
uncertainties, assumptions and other unpredictable factors, many
of
which are beyond the Company's control. These risks, uncertainties
and
assumptions include, but are not limited to, those described
under
"Risk Factors" in the Company's annual information form available
on
SEDAR at www.sedar.com and could cause actual events or results to
differ materially from
those projected in any forward-looking statements. The Company does
not
intend, nor does the Company undertake any obligation, to update
or
revise any forward-looking information or statements contained in
this
news release to reflect subsequent information, events or
circumstances
or otherwise, except if required by applicable laws.
PEA: ADDITIONAL CAUTIONARY NOTE
This note regarding the preliminary economic assessment (PEA) is
in
addition to cautionary language already included within the
news
release as required under NI 43-101. The PEA is preliminary in
nature
and includes Inferred mineral resources that are considered too
speculative geologically to have the economic considerations
applied to
them that would enable them to be categorized as mineral reserves,
and
there is no certainty that the PEA based on these mineral
resources
will be realized. Mineral resources that are not mineral reserves
do
not have demonstrated economic viability.
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.
Figure 1: Property Geology within the Tabuaço Project
Area
SOURCE COLT RESOURCES INC.
PDF available at:
http://stream1.newswire.ca/media/2013/09/04/20130904_C4203_DOC_EN_30387.pdf