Issue link: http://resourceworld.uberflip.com/i/554714
a u g u s t / s e p t e m b e r 2 0 1 5 www.resourceworld.com 7 Life-of-Mine (over 23 years) metal production is estimated to be 4.5 billion pounds (2.05 million tonnes) of copper, 512,000 ounces of gold and 15.6 million ounces of silver in a copper concentrate. Average annual copper production for years 1-5 are expected to be 275 million pounds. Low LOM site operating costs are $11.80 per ton of ore-milled (years 1-5 with C1 production costs of $1.49/lb pay- able copper). Assuming a Base Case of US $3.15/lb copper, US $1,200/oz gold and US $18/ oz silver, the Integrated Project generates Life-of-Mine after-tax net cash flow of US $2.5 billion, a NPV (5% discount) of US $1.1 billion, an after-tax IRR of 15.6% with a 4.7-year payback. Initial capital costs are estimated to be $1.04 billion including contingencies and excluding working capital of $34 million. Sustaining LOM capital is $0.63 billion. Permits are in hand for the underground operation. Production is slated to start in 2018. Underground development is under way for definition drilling of the higher grade zones targeted for first mining and extension of the known deposit boundar- ies to obtain geotechnical information to refine development designs. Construction of the production-sized headframe and hoist was completed in 2013, and during 2014 and 2015 supported the sinking of a circular 24-foot diameter concrete lined shaft to the 1900 main haulage level. Ongoing exploration drilling contin- ues to intersect very good copper values. Recent hole NC15-13, drilled on the bridge of the pits, intersected shallow mineral- ization of 63.9 metres (209.5 feet) grading 1.39% copper, true thickness. The drill program, which started in late February, will total up to 74,000 feet (22,600 metres). The Pumpkin Hollow deposits also host substantial quantities of iron. Additional sampling of the high iron portions of the South deposit for metallurgical test work is in progress with encouraging results to date. The company recently executed a Memorandum of Understanding with a large multi-national steel producer to assess opportunities to exploit the large Pumpkin Hollow iron resource. Nevada Copper intends to lease a significant portion of its initial mobile equipment fleets and has a Caterpillar agreement in place for the smaller UG fleet. The company has no plans to bring in a senior partner at this time. Romarco Minerals inc. [R-TSX] began mine construction, in May, at its 100%- owned Haile gold project three miles north of Kershaw, north-central South Carolina. Located in what is called the Carolina Slate Belt, host to a number of large gold depos- its, the Haile Mine was a past-producing, open-pit operation that recovered about 50 tonnes of gold (USGS). The Toronto-based company has com- pleted a positive Feasibility Study, received all major permits and secured project financing. Extensive drilling has delin- eated measured and indicated resources (at US $1,200/oz) totaling 4 million ounces grading 1.77 g/t gold, including proven and probable reserves. Inferred resources (at US $1,200/oz) stand at 0.8 million ounces of 1.24 g/t gold. Initial throughput for the open pit oper- ation will be 7,000 tpd with flexibility for significant increases in throughput. Years 1-4 will see average annual production of 155,000 oz/year, with year one produc- tion of 172,000 ounces. Gold recovery is expected to be 83.7% with cash operating costs of US $477/oz. All-in sustaining costs will be US $624/oz. Initial capital costs are US $333 million with sustaining capital of US $138.5 million. After-tax NPV at a 5% discount rate increased is $329 million with an after-tax IRR of 20.1%. Romarco Minerals is headed by Dr. Diane Garrett, President and CEO. The mining fleet and related vehicles as well as equipment and machinery are arriving on site. The first gold pour is anticipated dur- ing the fourth quarter of 2016. Just before our press time, OceanaGold Corp. [OGC-TSX, ASX, NZX] announced it will acquire Romarco Minerals in an all-share transaction valued at CDN $856 million. Upon completion of the arrangement, OceanaGold and Romarco shareholders will own approximately 51% and 49% of the combined company, respectively. newmont Mining Corp. [NEM-NYSE] announced that it will build the first phase of Long Canyon, a heap leach oxide mine in Elko County, Nevada with significant upside potential in an emerging gold dis- trict located less than 100 miles from its existing Nevada operations. Newmont acquired the Long Canyon gold deposit, the only significant major discovery in Nevada in the last decade, in April 2011. The first phase of development consists of an open pit mine and heap leach opera- tion with expected gold production of between 100,000 and 150,000 ounces per year over an eight-year mine life at an esti- mated all-in sustaining cost of between US $500 and $600/oz. At current gold prices, the project is expected to generate around US $100 million in EBITDA annually, beginning in 2017. Gold reserves stand at 1.2 million ounces averaging 2.29 g/t with prospective mineralization over a three- mile strike length. "Taking a phased approach to devel- oping Long Canyon gave us the means to lower development capital to between $250 million and $300 million; gener- ate an IRR of about 17% at current gold prices; and reduce the payback period to just over four years after first commercial production, which we expect to reach in the first half of 2017." said Gary Goldberg, Unlike the oil & gas sector, where a well can be online in a few months, sometimes it takes decades for a mine to achieve commercial production.