American Bullion - Production Alternatives Under Review at Red Chris.VANCOUVER, British Columbia--(BUSINESS WIRE)--June 6, 1996--A prefeasibility study of American Bullion BULLION. In its usual acceptation, is uncoined gold or silver, in bars, plates, or other masses. 1 East, P. C. 188. 2. In the acts of Congress, the term is also applied to copper properly manufactured for the purpose of being coined into money. Mineral's 80 percent owned Red Chris copper and gold deposit was completed by Fluor Daniel Wright Engineering Ltd. ("Fluor Daniel") and delivered to Teck Corporation ("Teck") for their analysis on May 3, 1996. Teck has a 20 percent interest in the Red Chris project and, prior to August 3, 1996, may elect under the joint venture agreement to proceed as operator to complete a final bankable bank·a·ble adj. 1. Acceptable to or at a bank: bankable funds. 2. Guaranteed to bring profit: a bankable movie star. feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. over the ensuing en·sue intr.v. en·sued, en·su·ing, en·sues 1. To follow as a consequence or result. See Synonyms at follow. 2. To take place subsequently. 12 month period. A subsequent election to arrange all production financing and place the Red Chris property into production would allow Teck to increase their interest to a total 55 percent interest in the project. The Red Chris property, located near Dease Lake in north central British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography , has been extensively diamond drilled over the last two years, with 244 holes now bored for a total of 74,782 metres drilled. This drilling has defined a mineral deposit with measured and indicated tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. of 270 million tonnes grading 0.46 percent copper and 0.42 grams per tonne gold using an $8.50 per tonne Net Smelter Return ("NSR NSR abbr. normal sinus rhythm NSR Normal sinus rhythm, see there ") cut off equivalent to an approximate 0.33 percent copper cut-off cut-off Anesthesiology The point at which elongation of the carbon chain of the 1-alkanol family of anesthetics results in a precipitous drop in the anesthetic potential of these agents–eg, at > 12 carbons in length, there is little anesthetic activity, grade. Fluor Daniel directed their prefeasibility study to maximizing metal output by expanding the deposit limits to incorporate a larger mining reserve. Accordingly, the parameters of a 90,000 tonne per day mining operation were applied to a 494 million tonne mining reserve with an average grade of 0.323 percent copper and 0.254 grams per tonne gold. The Fluor Daniel study results are positive and are reported in the accompanying table. American Bullion President, John S. Brock brock n. Chiefly British A badger. [Middle English brok, from Old English broc, of Celtic origin.] , said the company delivered the 90,000 tonne per day prefeasibility study to Teck in early May to ensure that there will be a continuity of ongoing work in the field there being advantages to completing bulk sampling for pilot mill testing during the summer season. Ongoing environmental and socioeconomic so·ci·o·ec·o·nom·ic adj. Of or involving both social and economic factors. socioeconomic Adjective of or involving economic and social factors Adj. 1. studies related to an application for a mine development certificate have been underway for nine months with anticipation of obtaining government approvals for the Red Chris Project in 1997. Brock also noted that it is the current opinion of the American Bullion-Teck Joint Venture that the ongoing feasibility programs of the Red Chris project should focus on reduced throughput and capital cost plans. Accordingly, Teck and American Bullion are presently examining a range of lower throughput mine models with attendant lower capital costs while meeting a 20 percent rate of return objective. Teck's decision with respect to continuing with the work programs to obtain final feasibility for the appropriate mine and milling plan is expected in the next sixty days. Brock said the Red Chris copper-gold project compares very favourably with other large scale open-pit porphyry Porphyry, Greek scholar Porphyry (pôr`fĭrē), c.232–c.304, Greek scholar and Neoplatonic philosopher. He studied rhetoric under Cassius Longinus and philosophy under Plotinus. deposits scheduled for production in British Columbia, such as Princeton- Sumitomo's Huckleberry huckleberry, any plant of the genus Gaylussacia, shrubs of the family Ericaceae (heath family), native to North and South America. The box huckleberry (G. brachycera) of E North America is evergreen and is often cultivated. The common huckleberry (G. and Royal Oak's Kemess deposits. Copper-gold porphyries have been, and will continue to be, the backbone of mining success in the province of British Columbia. Current forecasts indicate that by the year 2000, due to the depletion of reserves, only three of British Columbia's existing major open pit mines will remain in production. This situation, coupled with continuing world- wide demand for copper sulphide sulphide: see sulfide. concentrates with high value gold credits underlines the demand for Red Chris production. -0- HIGHLIGHTS OF PREFEASIBILITY STUDY RED CHRIS PROJECT (90,000 T.P.D. OPERATION) Mineable Reserve 494 million tonnes
Reserve Grade 0.323 percent copper
0.254 g / T gold
Strip Ratio 1.59 / 1
Contained Metal 3.5 billion pounds copper
4.0 million ounces gold
Proposed Production Rate 90,000 tonnes per day
32.8 million tonnes per year
Mine Life 16 years
Concentrate and Metal Production
Copper Recovery 88.4 percent
Gold Recovery 63.1 percent
Annual Concentrate Produced 348,500 tonnes
Copper Grade of Concentrate 26.9 percent
Gold Grade of Concentrate 16.1 g / T
Life of Mine Average Annual
Copper Production 207 million pounds
Life of Mine Average Annual
Gold Production 169,000 ounces
Capital Costs Initial and Working Capital $541 million Life of Mine Average Operating Costs $5.29 / tonne
Base Case Metal Prices US$1.00 / lb copper
US$400 / oz gold
US$5.00 / oz silver
Life of Mine Average Net Smelter Return $8.52 / tonne Life of Mine Average Pre-Tax Cash Flow $92.2 million / year Ranking of Red Chris BC's third largest copper deposit with other BC Bulk Tonnage Deposits BC's second largest gold deposit Ranking of Proposed Red Chris Production Annual Copper Production Canada's 4th largest producer Annual Gold Production Canada's 9th largest producer PROJECTED PRE-TAX FINANCIAL RETURNS (PROJECT BASIS)
PAY BACK RATE OF NPV AT 10 PERCENT
PERIOD RETURN DISCOUNT ($CDN)
Base Case
(100 percent
Equity Financing) 5 years 14.0 percent $113.1 million
Base Case (Current Metal Prices) 4 years 22.4 percent $377.4 million 50 percent Hydro Line Subsidy 4.7 years 15.6 percent $149.5 million 100 percent Hydro Line Subsidy 4.5 years 17.4 percent $185.9 million Base Case (65 percent Debt, 35 percent Equity Financing) 10 years 21.5 percent $168.4 million PROJECTED PRE-TAX FINANCIAL RETURN FOR AMERICAN BULLION'S 45 PERCENT CARRIED INTEREST
NET CASH FLOW NPV AT 10 PERCENT
DISCOUNT ($CDN)
Base Case
(100 percent Equity
Financing) $381 million $110 million
Base Case (65 percent Debt, 35 percent Equity Financing) $336 million $96.3 million -0- ON BEHALF OF THE BOARD OF DIRECTORS John S. Brock President -0- Note to Editors: American Bullion Minerals Ltd. TSE/VSE Ticker ticker An automated quotation system on which security transactions are reported after they occur on an exchange floor. Even though the newer systems are electronic and no longer actually tick, the name of the old mechanical device has stuck. Symbol-ABP Shares Outstanding 12.2 million Fully Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. 13.4 million Trading Range Trading Range The spread between the high and low prices traded during a period of time. Notes: When a stock breaks through or falls below its trading range after several days of trading in a range, it usually means there is momentum (positive or negative) building. (May) $3.51 - $5.87CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. The Vancouver Stock Exchange Vancouver Stock Exchange (VSE) A securities and options exchange in Vancouver, British Columbia, (Canada), specializing in venture capital companies. Vancouver Stock Exchange See Canadian Venture Exchange (CDNX). has not reviewed, and does not accept responsibility, for the accuracy or adequacy of this news release. CONTACT: American Bullion Minerals Ltd. John S. Brock, 604/687-4951 (President) 604/687-4991 (Fax) |
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