Euro Sun Mining Inc (TSX:ESM, OTC:CPNFF). has filed an updated definitive feasibility study on the Colnic and Rovina open pits - the initial phase of development of its Rovina Valley project in Romania.
Pre-Tax NPV [net present value] increases 41% to US$630mln, with an IRR [internal rate of return] of 22.7%, based on US$1,675/oz gold and US$3.75/lb copper
Scott Moore, Euro Sun Mining’s CEO, said: “Filing of the full DFS is a key milestone for one of Europe’s largest undeveloped copper-gold projects.
“The substantially improved economics are based upon conservative long-term commodity prices and include the full impact from cost escalation since the original study.
“With operating after-tax cashflows anticipated to be of more than US$1bn and a highly competitive AISC of US$787 gold equivalent ounce oz, this is clearly a high-quality project.”
The mine is estimated to produce 1.47mln oz of gold and 403mln lbs of copper over the life of the project at sustaining cost of US$787/gold equivalent ounce
Approximately 43mln tonnes or 19% less waste material is expected to be mined resulting in a 1.45:1 strip ratio over LOM
The updated study incorporates the most current cost and capital expenditure data, with initial capex of US$448mln.
Rovina Valley Project incorporates dry stack tailings and is a cyanide-free operation
Included in the updated DFS is an updated mineral reserve and resource estimate for the open pit deposits incorporating current metal prices and operating parameters.