Kinbauri Receives Validation of Revised Mine Plan From Independent Consultant
May 29 2009 - 9:21AM
Marketwired
Kinbauri Gold Corp. ("Kinbauri") (TSX VENTURE: KNB) (FRANKFURT:
3KG.DE), further to its press releases of May 11th and May 12th,
2009, is pleased to announce that Scott Wilson Mining . ("SWM") has
completed its review of Kinbauri's revised mine plan for the El
Valle/Carles Project (the "Project") which:
- Advances the date of first gold pour to 12 months from the
start of development.
- Significantly reduces pre-production capex.
The revised plan was prepared by Kinbauri based on the Scoping
Study by SWM, filed on April 20th, 2009 ("the Scoping Study"). SWM
concluded that there are no fatal flaws to the revised mine plan
completed by Kinbauri. The following table compares key assumptions
and results from the Scoping Study and Kinbauri's revised plan;
-------------------------------------------------------------------
Item Revised Plan Scoping Study
(May/09) (April/09)
-------------------------------------------------------------------
Portal location Open pit high wall Adjacent to mill
-------------------------------------------------------------------
Decline gradient 15% 12%
-------------------------------------------------------------------
Decline length (metres) 560 870
-------------------------------------------------------------------
Initial stopes A107 (upper) A107 (lower) and
San Martin
-------------------------------------------------------------------
Mined resources
(tonnes) 6,138,178 6,331,344
-------------------------------------------------------------------
Payable Cu (M lb) 83.4 86.6
-------------------------------------------------------------------
Payable Au (oz) 857,817 876,750
-------------------------------------------------------------------
Combined Revenue
(M euros) 608.6 624.3
-------------------------------------------------------------------
Total Capital cost
(M euros) 95.3 91.4
-------------------------------------------------------------------
Life of Mine Operating
cost (M euros) 289.4 296.8
-------------------------------------------------------------------
Pre-production Capital
cost (M euros) 40.2 67.5
-------------------------------------------------------------------
Capital cost (M euros) 95.3 91.4
-------------------------------------------------------------------
Total Operating
cost (M euros) 289.4 296.8
-------------------------------------------------------------------
Total cash cost per
Ounce AuEq (euros/oz) 254.71 261.63
-------------------------------------------------------------------
Date of First Revenue 12 months from start 23 months from start
-------------------------------------------------------------------
Pre-tax NPV
(@10%) (M euros) 70.2 68.6
-------------------------------------------------------------------
The revised plan provides early access to the top of the 107
Area ("A107") with the result that a larger proportion of high
grade ore will be processed in the early stages of the Project. The
Upper A107 was scheduled for mining at a later time in the Scoping
Study's mine life, as mineralization in this area is classified as
Inferred. The revised plan, has allowed for upgrade drilling to
convert the A107 mineralization to Indicated, as well as an
allowance for test mining. Successful upgrading of the A107
Inferred material is key to the success of the revised plan.
Initial production from A107 will be supplemented with ore from the
present decline and with production from the re-opened Carles
underground mine.
Cautionary Statement as Required by NI 43-101, Sect 2.3 (3):
These assessments are preliminary in nature; they include 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 preliminary assessments will be realized because
mineral resources that are not mineral reserves do not demonstrated
economic viability.
Dr. Rampton, Kinbauri's President and CEO, commented "We are
extremely pleased that Scott Wilson has verified the viability of
the revised mine plan that our engineering team developed
subsequent to receipt of the Scoping Study. Reduction of the
pre-production capex in combination with funds to be provided by
the Glen Eagle transaction significantly reduces the need for
future financing. The Project can look forward to production in
2010 with robust annual after-tax cash flows
This press release has been prepared by Dr. Vern Rampton, P.
Eng., President and CEO in his capacity as a qualified person. Dr.
Rampton will record a "Beyond the Press Release" webcast concerning
the revised mine plan at El Valle/Carles on Kinbauri's Investor
Relation site at http://www.agoracom.com/IR/kinbauri on May 29th.
This release has also been reviewed and approved by SWM.
About Kinbauri:
Kinbauri is a TSXV - Tier 1 Mineral Exploration Company focused
on the development of precious metal prospects in Spain, Nevada and
Canada. Its immediate focus is to begin operations at its El
Valle/Carles property in Asturias, northwestern Spain in 2010. It
currently has 59,348,051 common shares issued and outstanding.
This press release contains certain forward-looking statements,
which are based on the opinions and estimates of management at the
date the statements are made, and are subject to a variety of risks
and uncertainties and other factors that could cause actual events
or results to differ materially from those projected. Kinbauri
undertakes no obligation to update forward-looking statements if
circumstances or management's estimates or opinions should change.
The reader is cautioned not to place undue reliance on
forward-looking statements.
VISIT:
Kinbauri Gold's Hub at http://www.agoracom.com/IR/kinbauri where
investors can post questions and receive answers or review
questions and answers already posted by other investors. Kinbauri
Web-Site: www.kinbauri-gold.com
THIS PRESS RELEASE WAS PREPARED BY KINBAURI GOLD CORP. THE TSX
VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
Contacts: Kinbauri Gold Corp. North America - Darrell Munro,
BB.A, LL.B Manager, Corporate Communications 613-836-0198
dmunro@kinbauri-gold.com Kinbauri Gold Corp. Dr. Vern Rampton, P.
Eng. President 613-836 2594 613-831 2730 (FAX)
vrampton@kinbauri-gold.com kinbauri@kinbauri-gold.com INVESTEL
Europe - Ruediger (Rudy) Hnyk CEO Investor Relations &
Telecommunications ceo@investel.de
Kinbauri Gold Corp Com Npv (TSXV:KNB)
Historical Stock Chart
From Sep 2024 to Oct 2024
Kinbauri Gold Corp Com Npv (TSXV:KNB)
Historical Stock Chart
From Oct 2023 to Oct 2024