Aldridge Announces Robust Results for Yenipazar Feasibility Study
- Pre-tax IRR of 26.4% -
- Pre-tax NPV(7% )of $433M -
TORONTO, April 3, 2013 /CNW/ – Aldridge Minerals Inc. (TSX Venture: AGM)
(“Aldridge” or the “Company”) is pleased to announce results of the
Feasibility Study for its Yenipazar gold and polymetallic VMS deposit
in central Turkey (the “Feasibility Study”). All dollar figures in this
news release are stated in United States (“US”) dollars.(1)
“The results of the Feasibility Study confirm our view that Yenipazar is
a highly attractive project with robust economics that validates the
effort we have made to advance Yenipazar since the Preliminary Economic
Assessment of 2010,” commented Aldridge’s President & CEO Mario Caron.
“The strong results pave the way for the completion of additional
technical work while we advance the project financing and enter the
development stage in the coming months.”
Base Case Economics Pre-tax After-tax Capital Costs (US$ millions) IRR 26.4% 22.5% Mine Development, $278 Plant & Equipment Owner's cost $31 NPV0% $899M $707M EPCM $36 NPV7% $433M $323M Contingency (11%) $37 Total pre-production $382 CAPEX Payback (years) 2.6 2.9 Operating Costs Base Case Pricing Assumptions Total average cost $29.15 per tonne of ore Gold ($/oz) $1,450 Silver ($/oz) $28.00 Mining / Milling Copper ($/lb) $3.00 Mine life (years) 12 Lead ($/lb) $0.95 Strip ratio (inc. 4.3:1 pre-stripping) Zinc ($/lb) $0.90 Nominal throughput 2.5M (tonnes per annum)
Production Highlights Gold (oz) Silver (M Copper (M Lead (M lbs) Zinc (M lbs) oz) lbs) Life of Mine 696,482 21.2 120.1 368.0 563.8 Average Annual2 62,642 1.9 11.2 33.8 56.3
1 The complete NI 43-101 compliant technical report will be available on SEDAR and the Company website within 45 days. Interested parties are encouraged to read the entire report. The following news release contains excerpts from the report. 2 Average production for Years 2 - 10 (Year 1 includes 6 months of ramp-up; Year 11 production is from the milling of a combination of sulphide ore and some stockpiled oxide ore; Year 12 production is solely from the milling of stockpiled oxide ore).
The Yenipazar project is located approximately 220 kilometres southeast
of Ankara, the capital of Turkey, 60km south of Yozgat, the provincial
centre and approximately 120 kilometres northwest of Kayseri, a city of
one million people. The project is well served by existing
infrastructure, including paved roads, a railroad, and will be
connected to the national power grid.
With the benefit of Turkey’s excellent infrastructure that is already in
place, the majority of the capital expenditures will be spent on
developing the project. The pre-production capital costs for the
Yenipazar project summarized below are estimated to be $382 million and
are based on first quarter 2013 US$ costs. No estimates for escalation
or foreign exchange fluctuation have been included in the capital
Capital Cost US$ millions Mine Development, Plant & Equipment Mine development $20 Mine equipment $41 Process plant equipment $55 Process plant & infrastructure $119 Tailings facility $37 Power transmission $4 Water management $2 Total $278 Owner's cost (including land acquisition) $31 EPCM $36 Contingency (11%) $37 Total pre-production CAPEX $382
The project requires additional sustaining capital of $58 million,
largely to purchase additional mining equipment in Years 1 and 7 ($22
million), for additional tailings management work in Year 3 ($12
million), and for mine closure in Year 12 ($24 million). The sustaining
capital requirements are reflected in the financial model.
The shallow nature of the ore body and the flat topography of the
project footprint and surrounding area allow the Company to benefit
from the lower operating costs associated with conventional open-pit
mining methods. Operating costs for the tailings management facility
have been estimated at approximately $11 million during the 12-year
life of the project. G&A includes on-site costs as well as a portion of
the costs incurred at the Company’s corporate office in Ankara. Total
operating costs per ore tonne for the project have been estimated as
Operating Cost (LOM) $/tonne of ore Mining $11.15 Processing $16.36 Tailings management $0.31 Water management $0.07 G&A $1.26 Total Operating Cost $29.15
The mineral reserves for the Yenipazar project comprise three different
mineralization types to be mined and processed:
-- oxide mineralization (11% of total); -- copper-enriched mineralization (9% of total); and -- sulphide mineralization (80% of total).
The processing characteristics of each are slightly different with the
oxide zone yielding three payable metals (Au, Ag, Pb); while the
copper-enriched and sulphide zones will yield five payable metals (Au,
Ag, Cu, Pb, Zn).
The mineral reserve is the portion of the mineral resource that has been
identified as mineable within a design pit. The overall pit slope
criteria that were used for designing the pit ranged from 26° to 35° in the upper slope (weakened and weathered rock) and from 39° to 49° in the lower slope (competent rock). The strip ratio for the
deposit is 4.3:1 including the pre-stripping and drops to 4.0:1 when
pre-stripping is excluded. The mineral reserve incorporates ore
criteria such as mining recovery, mining losses and dilution. A mining
loss factor of 3% and a dilution factor of 14.8% were applied to each
The Probable mineral reserves are summarized in the table below:
_______________________________________________________________________________________________________________ | | | Contained Metal | | |_________________________________________________________|_____________________________________| | | Tonnage | Au| Ag| Cu| Pb| Zn| NSR| Au| Ag| Cu| Pb| Zn| | | | | | | | | | (M| (M| (M| (M| (M| | | | (g/t)| (g/t)| (%)| (%)| (%)| ($/t)| oz)| oz)| lbs)| lbs)| lbs)| |_______________|______________|______|______|______|______|______|_______|______|______|_______|_______|_______| | Oxide | 3,212,000| 0.83| 23.2| 0.24| 0.96| 0.54| 42.23| 0.09| 2.40| 16.99| 67.98| 38.24| |_______________|______________|______|______|______|______|______|_______|______|______|_______|_______|_______| | Cu-Enriched| 2,491,000| 0.90| 32.9| 0.45| 0.94| 1.16| 74.72| 0.07| 2.63| 24.71| 51.62| 63.70| |_______________|______________|______|______|______|______|______|_______|______|______|_______|_______|_______| | Sulphide | 23,463,000| 0.90| 30.1| 0.29| 0.96| 1.56| 93.32| 0.68| 22.71| | | | | | | | | | | | | | | 150.01| 496.58| 806.94| |_______________|______________|______|______|______|______|______|_______|______|______|_______|_______|_______| | TOTAL | 29,166,000| 0.89| 29.6| 0.30| 0.96| 1.41| 86.10| 0.84| 27.74| 191.72| 616.18| 908.88| |_______________|______________|______|______|______|______|______|_______|______|______|_______|_______|_______|
-- The mineral reserves are based on NSR cut-off values of USD $17/t for oxide and USD $20/t for copper-enriched and sulphide mineralization. -- The reserve estimate is based on an updated resource estimate (see news release dated November 26, 2012). -- The mineral reserves in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
The mining method proposed for the Yenipazar project will be a
conventional open-pit mine. An owner-operated fleet of 90-tonne trucks
and 10-m(3) hydraulic excavators will be used to mine the ore and waste materials.
Drilling and blasting of ore and waste rock will be required, while
overburden materials will be free digging. The organic top soil
component of the overburden will be segregated and stockpiled
separately. These temporary top soil stockpiles will eventually be
removed when the material is used as part of the closure plan to cap
the tailings dam, waste rock dump, and other disturbed areas.
In order to distribute the waste stripping quantities over time and to
allow faster access to better grade ore, the pit has been subdivided
into four phases that are mined sequentially. Mining may occur in
multiple phases simultaneously, depending on the respective strip
ratios of ore to waste on the mining benches.
As part of the Feasibility Study, an extensive testwork programme was
undertaken in order to establish the process design parameters,
formulate the process flowsheet, select equipment, evaluate ore
variability and confirm metallurgical recoveries.
Based on the findings of this testwork programme the process plant
design parameters were determined. The design basis of the selected
process is based on whole ore processing at a nominal throughput of 2.5
million tonnes per annum. The process plant and design, as detailed in
the Feasibility Study, is based on conventional crushing and grinding
followed by a gravity circuit where most of the gold and a portion of
the silver are recovered. The gravity circuit is followed by sequential
flotation of copper, lead, and zinc.
80% of the ore tonnage mined consists of sulphide ore while
copper-enriched and oxide ore make up 9% and 11% of the total
respectively. Some oxide ore is milled in Year 1 during plant
commissioning and ramp-up and the remaining oxide is processed in Years
11 and 12. Sulphide and copper-enriched ore is essentially milled in
the year that it is mined.
The mill ramp-up rate increases gradually over the first 6 months of
operations with full production reached in Month 7. The total tonnage
processed in Year 1 is 2.06 million tonnes compared with 2.5 million
tonnes in full production. A summary of the milling schedule is
included in Appendix B.
The metallurgical testwork conducted by SGS to-date indicates the
following recoveries by ore type. Additional variability testwork was
performed on sulphide ore mined and processed in the first four years
of operations. The results of this testwork are not shown below, but
are reflected in the financial model.
Sulphide (Year 5 onwards)
______________________________________________________________ |Metal | Total |DorÃ©|Copper / Gold|Lead / Silver| Zinc | | |Recoveries| | Concentrate | Concentrate |Concentrate| |______|__________|____|_____________|_____________|___________| | Gold | 88% |59% | 11% | 15% | 3% | |______|__________|____|_____________|_____________|___________| |Silver| 84% |4.5%| 15% | 54% | 10.5% | |______|__________|____|_____________|_____________|___________| |Copper| 72% | | 72% | | | |______|__________|____|_____________|_____________|___________| | Lead | 72% | | | 72% | | |______|__________|____|_____________|_____________|___________| | Zinc | 56% | | | | 56% | |______|__________|____|_____________|_____________|___________|
Sulphide Recoveries: Potential Upside
Metallurgical testing indicates potential to increase recoveries of
lead, silver and gold in the sulphide ore. After leaching of gold in
the gravity circuit, significant optimization of lead and silver
recoveries may be achieved by single stage flotation of the leach
residue (containing lead and silver) before it joins the lead flotation
circuit. Additional gold may be recovered by floating pyrite in the
zinc tailings and subsequently leaching gold from the
pyrite. Confirming these potential improvements is a priority following
the completion of the Feasibility Study.
Copper-Enriched (reflecting limited testwork to date)
______________________________________________________________ |Metal | Total |DorÃ©|Copper / Gold|Lead / Silver| Zinc | | |Recoveries| | Concentrate | Concentrate |Concentrate| |______|__________|____|_____________|_____________|___________| | Gold | 75% |53% | 4% | 10% | 8% | |______|__________|____|_____________|_____________|___________| |Silver| 52% | 6% | 13% | 21% | 12% | |______|__________|____|_____________|_____________|___________| |Copper| 47% | | 47% | | | |______|__________|____|_____________|_____________|___________| | Lead | 35% | | | 35% | | |______|__________|____|_____________|_____________|___________| | Zinc | 34% | | | | 34% | |______|__________|____|_____________|_____________|___________|
Oxide (testwork still under review)
______________________________________________________________ |Metal | Total |DorÃ©|Copper / Gold|Lead / Silver| Zinc | | |Recoveries| | Concentrate | Concentrate |Concentrate| |______|__________|____|_____________|_____________|___________| | Gold | 67% |60% | | 7% | | |______|__________|____|_____________|_____________|___________| |Silver| 50% |45% | | 5% | | |______|__________|____|_____________|_____________|___________| |Copper| 0% | | | | | |______|__________|____|_____________|_____________|___________| | Lead | 29% | | | 29% | | |______|__________|____|_____________|_____________|___________| | Zinc | 0% | | | | | |______|__________|____|_____________|_____________|___________|
The Company will produce four products: a dorÃ©, a copper / gold
concentrate, a lead / silver concentrate, and a zinc concentrate. The
grades of the concentrates are summarized in the table below.
Occasional levels of deleterious elements can be expected in the
concentrates and a penalty may be incurred due to higher than ideal
levels of lead in the copper / gold concentrate. All three concentrates
will be marketable.
_____________________________________ | |Concentrate| |Product | Grade| |_________________________|___________| |Copper / Gold Concentrate| 26% Copper| |_________________________|___________| |Lead / Silver Concentrate| 56% Lead| |_________________________|___________| |Zinc Concentrate | 53% Zinc| |_________________________|___________|
Average annual production for Years 2 – 10 by metal and product is as
_______________________________________________________________ | | Gold|Silver| Copper| Lead| Zinc| |Product | (oz)|(M oz)|(M lbs)|(M lbs)|(M lbs)| |_________________________|______|______|_______|_______|_______| |DorÃ© |42,185| 0.1| | | | |_________________________|______|______|_______|_______|_______| |Copper / Gold Concentrate| 6,896| 0.3| 11.2| | | |_________________________|______|______|_______|_______|_______| |Lead / Silver Concentrate|10,404| 1.2| | 33.8| 3.3| |_________________________|______|______|_______|_______|_______| |Zinc Concentrate | 3,157| 0.3| | | 53.0| |_________________________|______|______|_______|_______|_______| |Total |62,642| 1.9| 11.2| 33.8| 56.3| |_________________________|______|______|_______|_______|_______| |% of Revenue | 34.7%| 20.8%| 12.9%| 12.3%| 19.3%| |_________________________|______|______|_______|_______|_______|
The proposed mine development involves the construction of an open pit
mine, a waste rock dump (“WRD”), a processing plant and a tailings
management facility (“TMF”) together with the construction of a
supporting road infrastructure and various mine-related utilities.
The port of Iskenderun, which has been identified by the logistics study
as the preferred port for the shipping of concentrates, is located
approximately 500 kilometres to the south of the project on the
Mediterranean Sea. The concentrates will be trucked on existing roads
approximately 75 kilometres southwest of the project to a railhead in
Himmetdede, where they will then be sent by rail the remaining distance
to the port.
The project will be connected to the national grid with the construction
of a 17 kilometre 154 kV power line.
To satisfy the lining requirements under Turkish legislation, the TMF
will be equipped with a composite lining system constructed from a
compacted clay layer sourced from the open pit overburden sediments, a
geomembrane layer, and a drainage system. The TMF design incorporates a
system to divert water from the valley above the facility, underneath
the WRD and around the open pit, from where it will flow down the
Tailings from the plant will be pumped to the TMF situated approximately
500 metres south of the plant, where it will be hydraulically
deposited. The operating phase of the TMF will commence with
commissioning of the plant and first deposition of tailings on the
facility. Tailings will be pumped from the plant to the TMF via a
slurry delivery pipeline and will initially be deposited from the top
of the TMF starter wall into the basin of the lined facility. The
maximum height between the crest of the TMF raise and the valley floor
will be approximately 38 metres.
The Yenipazar project is located in a gently inclined valley that is
drained by a small creek. The open pit, the WRD and the TMF will all be
located in the valley and will thus intersect surface water courses as
well as the groundwater in the underlying geological formations.
Studies conducted to date indicate that run-off from the WRD is
relatively inert and therefore it should be possible to dispose of this
water to the environment with little or no treatment. A source of fresh
make-up water will be required from outside the mine works,
particularly during the first year of mining when the TMF is charged-up
and water from pit seepage is predicted to become available only
towards the end of Year 1 of mining. However, after the first year of
mining, clean water from an outside source is only likely to be
required to supply potable water to the mine camp and surrounding
villages. Testing has demonstrated that nearby aquifers have the
potential to supply the required amount of water for these purposes.
The Company, in consultation with its corporate advisors, estimates the
effective net profit royalty (revenues less operating expenses) to the
Turkish government amounts to approximately 1.6%.
In addition to the Turkish government royalty, the Yenipazar project is
subject to a 6% net profit interest (“NPI”, revenues less operational
expenses) to Alacer Gold Corp. (“Alacer”) until revenues of US$165
million are generated, and a 10% NPI from there on.
The Turkish government has legislated certain investment incentives
designed to promote investment in specific industries and regions of
Turkey. The Company has evaluated these investment incentives in
consultation with its corporate advisors, and has determined that the
Yenipazar project will qualify for the following incentives on
successful application and receipt of an investment incentives
-- Reduced corporate tax -- VAT exemption -- Exemption from custom duties -- Support for interest payments -- Social security premium employer share elimination
For the purpose of the Feasibility Study, the Company has only
incorporated the corporate tax rate reduction and the VAT exemption
into the economic analysis. Under the incentive program, the Company
would receive income tax savings equal to 40% of the depreciable
capital cost required to build the Yenipazar project. Approximately 90%
of the total capital costs are depreciable. The income tax savings will
be received via a corporate income tax rate reduction from 20% to 4%.
For example, for every $100 million of allowable capital cost, the
corporate income tax savings would be $40 million, which enhances the
after-tax cash flow of the project.
Economic Analysis: Base Case Metal Prices
The Company has determined to present three economic scenarios using the
base case metal pricing assumptions described on Page 1. The first
scenario is on a pre-tax project basis and does not reflect the Alacer
NPI. The second scenario includes the NPI and the third scenario
includes both the NPI and applicable taxes. All scenarios demonstrate
______________________________________________________________ | |Pre-NPI, Pre-Tax|After-NPI, Pre-Tax|After-NPI,| | | | | After-Tax| |_______________|________________|__________________|__________| |IRR | 26.4%| 23.8%| 22.5%| |_______________|________________|__________________|__________| |NPV (0%) | $899M| $783M| $707M| |_______________|________________|__________________|__________| |NPV (7%) | $433M| $363M| $323M| |_______________|________________|__________________|__________| |Payback (years)| 2.6| 2.8| 2.9| |_______________|________________|__________________|__________|
Economic Analysis: Base Case Metal Prices Minus 10%
In the interest of further demonstrating the strength of the Yenipazar
project, the scenarios below outline the effect of a 10% reduction to
base case metal prices on the economics of the project.
_______________________________________________________________ | Base Case Minus 10% Pricing Assumptions | |_______________________________________________________________| |Gold ($/oz)|Silver ($/oz)|Copper ($/lb)|Lead ($/lb)|Zinc ($/lb)| |___________|_____________|_____________|___________|___________| | $1,300 | $25.00 | $2.70 | $0.85 | $0.80 | |___________|_____________|_____________|___________|___________|
______________________________________________________________ | |Pre-NPI, Pre-Tax|After-NPI, Pre-Tax|After-NPI,| | | | | After-Tax| |_______________|________________|__________________|__________| |IRR | 20.3%| 17.9%| 17.0%| |_______________|________________|__________________|__________| |NPV (0%) | $637M| $546M| $513M| |_______________|________________|__________________|__________| |NPV (7%) | $275M| $220M| $199M| |_______________|________________|__________________|__________| |Payback (years)| 3.1| 3.7| 3.9| |_______________|________________|__________________|__________|
Sensitivity Analysis (Base Case)
The graph below shows the sensitivity of NPV(7) (Pre-Tax, Pre-NPI) to capital costs, operating costs, and revenue using
base case metal prices. The value of the project is more sensitive to
revenue than to capital and operating costs. Additional sensitivity
analyses are included in Appendix A. http://files.newswire.ca/899/AldridgePDF.pdf
In accordance with Turkish law, an Environmental Impact Assessment
(“EIA”) report on the Yenipazar project must be submitted for approval
by the Turkish government. The EIA approval process involves the filing
of an initial application defining the scope of the proposed project
(completed), a public consultation process (completed), and a final
submission. In parallel with the EIA, Aldridge is also preparing an
Environmental and Social Impact Assessment report in accordance with
international standards. The Company expects to submit its Turkish EIA
by early Q3 2013 and will also proceed to apply for operating,
construction and other required permits following receipt of the EIA
Once initiated, it is estimated that construction will take
approximately 21 months and will be followed by a 2-month period of
plant commissioning and production ramp-up estimated to take 6 months.
Full commercial production will follow thereafter.
Aldridge management will host a conference call today, Wednesday April
3, 2013 at 10:00 am (Eastern) to discuss the Feasibility Study. Mr.
Mario Caron, President and CEO, will chair the call. All interested
parties can join the conference call by dialing 1-888-231-8191 or
1-647-427-7450. Please dial in 15 minutes prior to the call to secure a
line. The conference call will be archived for replay until April 11,
2013 at midnight. To access the archived conference call, please dial
1-855-859-2056 or 416-849-0833 and enter the reservation code 26651214.
Qualified Persons for the Feasibility Study
The Feasibility Study was compiled by Jacobs Minerals Canada Inc., a
subsidiary of Jacobs Engineering Group Inc., with contributions from
Golder Associates (UK) Ltd., P&E Mining Consultants Inc., SGS Mineral
Services UK, SRK Consulting (Turkey and UK), and others. The complete
NI 43-101 compliant technical report will be available on SEDAR and the
Company website within 45 days. The complete report details the extent
of the study, the assumptions made in analyzing the data provided, the
risks inherent in such projects and remaining work necessary to
validate the project feasibility.
The review and approval of the following Qualified Persons, as defined
in NI 43-101, of the information contained in this news release was
limited to their designated areas of responsibility as outlined below:
____________________________________________________________________ |Qualified Persons* |Establishment |Areas of | | | |Responsibility | |________________________|____________________|______________________| |Mr. Eugene Puritch, P. |P&E Mining |Resource and Reserve | |Eng. |Consultants Inc. |Estimation | | | |Capital and Operating | | | |Cost (Mining) | |________________________|____________________|______________________| |Graham Holmes, P. Eng. |Jacobs Minerals |Processing and Plant | |Tim Hayes, P. Eng. |Canada Inc. |Infrastructure and | |Alexander Duggan, P. | |Project Execution | |Eng. | |Capital and Operating | | | |Cost (Plant) | | | |Economic Analysis** | | | |and Sensitivities | |________________________|____________________|______________________| |William Harding FGS |SRK Consulting (UK) |Water Management | | |Ltd. | | |________________________|____________________|______________________| |Brendan Monaghan, |Golder Associates |Geotechnical (Plant, | |MIMMM, C. Eng. |(UK) Ltd. |Mine, Tailings) | |Hendrik J. H. (Hans) | |Capital and Operating | |Otto Pr. | |Cost (Tailings | |Eng. (RSA) | |Management) | |________________________|____________________|______________________| |Mike Hallewell, B.Sc, |SGS Mineral Services|Metallurgical Testwork| |F.I.M.M.M, F.S.A.I.M.M.,|UK Ltd. |(Recoveries) | |F.M.E.S., C. Eng. | | | |________________________|____________________|______________________| |Reliance on Other |Mineral Services LLC|Marketing | |Experts | | | |________________________|____________________|______________________| |* fulfills requirements of NI 43-101 | |____________________________________________________________________| |** input from all parties | |____________________________________________________________________|
Aldridge is a near development stage mining company focused on advancing
its Yenipazar polymetallic VMS deposit (Au, Ag, Cu, Pb, Zn) in Turkey -
a country that is committed to developing its natural resources and is
rapidly emerging as an economic powerhouse. Following completion of the
Feasibility Study, the Company’s most significant objective of 2013 is
to obtain the project financing needed to build the Yenipazar project
and thereafter commence production. The project financing may include
some combination of equity, senior debt, metal streaming and off-take
Caution Regarding Forward-Looking Information
This news release includes certain forward-looking statements within the
meaning of Canadian securities laws. Forward-looking statements involve
risks, uncertainties and other factors that could cause actual results,
performance, prospects and opportunities to differ materially from
those expressed in such forward-looking statements. Forward-looking
statements in this news release, include, but are not limited to,
economic performance and future plans and objectives of Aldridge. Any
number of important factors could cause actual results to differ
materially from these forward-looking statements as well as future
results. Although Aldridge believes that the assumptions and factors
used in making the forward-looking statements are reasonable, undue
reliance should not be placed on these statements, which only apply as
of the date of this news release, and no assurance can be given that
such events will occur in the disclosed timeframes or at all. Aldridge
disclaims any intention or obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
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 news
Appendix A: Selected Sensitivities
Table 1: Sensitivity of IRR (Pre-Tax, Pre-NPI) to Operating Costs and
__________________________________________ | | Operating Costs | | |_____________________________| | | 90% | 95%| 100%| 105%| 110%| |____________|_____|_____|_____|_____|_____| | |110%|32.6%|31.8%|31.0%|30.2%|29.3%| | |____|_____|_____|_____|_____|_____| | |105%|30.4%|29.5%|28.7%|27.9%|27.0%| | |____|_____|_____|_____|_____|_____| |Revenue|100%|28.1%|27.2%|26.4%|25.5%|24.6%| | |____|_____|_____|_____|_____|_____| | |95% |25.7%|24.8%|23.9%|23.0%|22.1%| | |____|_____|_____|_____|_____|_____| | |90% |23.3%|22.3%|21.4%|20.4%|19.4%| |_______|____|_____|_____|_____|_____|_____|
Table 2: Sensitivity of NPV (7%) (Pre-Tax, Pre-NPI) to Operating Costs
__________________________________________ | | Operating Costs | |US$ millions|_____________________________| | |90% | 95%| 100%| 105%| 110%| |____________|_____|_____|_____|_____|_____| | |110%|613.9|589.1|564.3|539.6|514.8| | |____|_____|_____|_____|_____|_____| | |105%|548.3|523.6|498.8|474.0|449.2| | |____|_____|_____|_____|_____|_____| |Revenue|100%|482.8|458.0|433.3|408.5|383.7| | |____|_____|_____|_____|_____|_____| | |95% |417.3|392.5|367.7|342.9|318.2| | |____|_____|_____|_____|_____|_____| | |90% |351.7|327.0|302.2|277.4|252.6| |_______|____|_____|_____|_____|_____|_____|
Table 3: Sensitivity of NPV (7%) (Pre-Tax, Pre-NPI) to Operating Costs
and Total Capital Cost
_____________________________________________________ | | Operating Costs | | US$ millions |_____________________________| | |90% | 95%| 100%| 105%| 110%| |_______________________|_____|_____|_____|_____|_____| | | 90%|521.1|496.4|471.6|446.8|422.0| | |____|_____|_____|_____|_____|_____| | |95% |502.0|477.2|452.4|427.6|402.9| | |____|_____|_____|_____|_____|_____| |Total Capital Cost|100%|482.8|458.0|433.3|408.5|383.7| | |____|_____|_____|_____|_____|_____| | |105%|463.6|438.9|414.1|389.3|364.5| | |____|_____|_____|_____|_____|_____| | |110%|444.5|419.7|394.9|370.1|345.4| |__________________|____|_____|_____|_____|_____|_____|
Appendix B: Summary Milling Schedule
___________________________________________________________________________________________________________________________ |MILLING | Total|-1| 1| 2| 3| 4| 5| 6| 7| 8| 9| 10| 11| 12| |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| |Summary by Ore | | | | | | | | | | | | | | | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Oxide| 3,212.2| | 411.1| | | | | | | | | | 697.4|2,103.7| |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| |Copper-Enriched| 2,490.4| | 833.3| 196.0| 364.8| 398.3| 42.4| 22.2| 486.4| 11.3| 132.5| 3.1| | | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Sulphide|23,463.7| | 818.1|2,304.0|2,135.2|2,101.7|2,457.6|2,477.8|2,013.6|2,488.7|2,367.5|2,496.9|1,802.6| | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Total|29,166.2| |2,062.5|2,500.0|2,500.0|2,500.0|2,500.0|2,500.0|2,500.0|2,500.0|2,500.0|2,500.0|2,500.0|2,103.7| |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| |Oxide | | | | | | | | | | | | | | | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Milled From| 261.0| | 261.0| | | | | | | | | | | | | Mine| | | | | | | | | | | | | | | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Milled From| 2,951.2| | 150.1| | | | | | | | | | 697.4|2,103.7| | Stocks| | | | | | | | | | | | | | | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Milled | 3,212.2| | 411.1| | | | | | | | | | 697.4|2,103.7| |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Au g/t| 0.83| | 1.07| | | | | | | | | | 0.79| 0.79| |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Ag g/t| 23.2| | 37.6| | | | | | | | | | 21.1| 21.1| |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Cu %| 0.24| | 0.33| | | | | | | | | | 0.22| 0.22| |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Pb %| 0.96| | 1.05| | | | | | | | | | 0.95| 0.95| |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Zn %| 0.54| | 0.65| | | | | | | | | | 0.53| 0.53| |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| |Copper-Enriched| | | | | | | | | | | | | | | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Milled From| 2,306.0| | 649.0| 196.0| 364.8| 398.3| 42.4| 22.2| 486.4| 11.3| 132.5| 3.1| | | | Mine| | | | | | | | | | | | | | | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Milled From| 184.3| | 184.3| | | | | | | | | | | | | Stocks| | | | | | | | | | | | | | | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Milled | 2,490.4| | 833.3| 196.0| 364.8| 398.3| 42.4| 22.2| 486.4| 11.3| 132.5| 3.1| | | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Au g/t| 0.90| | 0.88| 0.99| 0.76| 0.55| 0.84| 1.75| 1.30| 4.90| 0.41| 0.25| | | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Ag g/t| 32.9| | 45.9| 51.6| 28.7| 20.0| 31.5| 41.9| 20.8| 11.2| 18.8| 15.1| | | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Cu %| 0.45| | 0.62| 0.47| 0.41| 0.22| 0.27| 0.48| 0.43| 0.53| 0.21| 0.16| | | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Pb %| 0.94| | 1.07| 1.58| 0.90| 0.78| 1.12| 0.99| 0.68| 0.30| 0.69| 0.68| | | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Zn %| 1.16| | 1.11| 2.76| 1.05| 1.25| 1.81| 1.14| 0.51| 0.42| 1.30| 1.76| | | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| |Sulphide | | | | | | | | | | | | | | | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Milled From|23,390.3| | 788.0|2,304.0|2,135.3|2,101.9|2,457.3|2,477.9|2,013.6|2,488.8|2,367.6|2,496.8|1,759.2| | | Mine| | | | | | | | | | | | | | | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Milled From| 73.4| | 30.1| | | | | | | | | | 43.4| | | Stocks| | | | | | | | | | | | | | | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Milled |23,463.7| | 818.1|2,304.0|2,135.2|2,101.7|2,457.6|2,477.8|2,013.6|2,488.7|2,367.5|2,496.9|1,802.6| | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Au g/t| 0.90| | 1.05| 1.21| 1.39| 0.90| 0.89| 1.06| 0.89| 0.79| 0.65| 0.54| 0.68| | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Ag g/t| 30.1| | 38.4| 46.3| 41.1| 27.3| 28.8| 32.7| 25.5| 24.6| 23.9| 23.3| 24.4| | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Cu %| 0.29| | 0.59| 0.45| 0.42| 0.27| 0.25| 0.27| 0.28| 0.23| 0.23| 0.20| 0.24| | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Pb %| 0.96| | 1.16| 1.44| 1.39| 0.91| 0.96| 1.04| 0.66| 0.69| 0.72| 0.81| 0.91| | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______| | Zn %| 1.56| | 1.59| 2.48| 2.31| 1.53| 1.54| 1.56| 1.05| 1.06| 1.25| 1.35| 1.44| | |_______________|________|__|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|_______|
SOURCE Aldridge Minerals Inc.
Image with caption: “Sensitivity Analysis (Base Case) (CNW Group/Aldridge Minerals Inc.)”. Image available at: http://photos.newswire.ca/images/download/20130403_C2104_PHOTO_EN_25062.jpg