Scoping Study Confirms Economic Potential on the Division Mountain Coal Project for Cash Minerals.TORONTO -- CASH MINERALS LTD LTD 1 Laron-type dwarfism 2 Leukotriene D 3 Long-term depression, see there 4. Long-term disability . (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:CHX See Chicago Stock Exchange. CHX See Chicago Stock Exchange (CHX). ) is pleased to announce that it has received the "Division Mountain Scoping Study", dated April 13, 2005, which supports the potential for the economic development of an open pit mine based on the annual production of approximately 1.375 million tonnes of saleable sale·a·ble adj. Variant of salable. saleable or US salable Adjective fit for selling or capable of being sold saleability or US coal. The Scoping Study is based on measured and indicated resources of 51.5 million tonnes as defined by Norwest Corporation in its "Geologic Evaluation and Resources Calculation on the Division Mountain Property, Yukon Territory Yukon Territory, territory (2001 pop. 28,674), 207,076 sq mi (536,327 sq km), NW Canada. Geography and Climate The triangle-shaped Yukon territory is bordered on the N by the Beaufort Sea of the Arctic Ocean, on the E by the Northwest Territories, " dated March 9, 2005 (see Cash Minerals press release dated March 31, 2005) and was completed by Norwest Corporation, a leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. coal and engineering consultancy. Norwest notes that the measured and indicated resources included in the study is on less than 5% of the entire property and could be increased substantially with additional drilling. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the study, approximately 900,000 tonnes of Bituminous bi·tu·mi·nous adj. 1. Like or containing bitumen. 2. Of or relating to bituminous coal. Adj. 1. bituminous - resembling or containing bitumen; "bituminous coal" "B" coal on an annual basis could be available for sale to the thermal market within the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. ; an additional 300,000 tonnes could be offered for Pulverized pul·ver·ize v. pul·ver·ized, pul·ver·iz·ing, pul·ver·iz·es v.tr. 1. To pound, crush, or grind to a powder or dust. 2. To demolish. v.intr. Coal Injection (PCI (1) (Payment Card Industry) See PCI DSS. (2) (Peripheral Component Interconnect) The most widely used I/O bus (peripheral bus). ); and, 175,000 tonnes could be available for sale for a proposed mine mouth 40 MW generating market located on or near the property. The Division Mountain coal displays excellent metallurgical met·al·lur·gy n. 1. The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals, and creating useful objects from metals. 2. grade properties to that of similar coals sold into India, Japan and South Korea markets. Further tests and ash analysis studies are under way to determine the extent of this potential and could further increase the percentage of PCI/metallurgical coal from Division Mountain. Norwest Corporation developed preliminary mine plans and a mining cost estimate to exploit the project resources over a 22-year open pit mine life. The study's authors estimated capital costs to develop the mine of CDN (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. $31.9 million, an internal rate of return (IRR IRR In currencies, this is the abbreviation for the Iranian Rial. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) of 59.6 percent and a Net Present Value (NPV NPV See: Net present value ) of Cdn$74.8 million.
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Economic Results - Base Case
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Category C$ Million
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Startup Capital 31.9
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Replacement Capital 7.0
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Average Annual Revenue 103.8
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Average Annual Cash Costs 69.8
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Average Annual Non-Cash Costs 2.3
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Average Annual Pre Tax Cash Flow 34.0
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Net Present Value - NPV 74.8
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Internal Rate of Return - IRR 59.6%
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"These figures are very positive and will support a solid base to move on to feasibility," said Bill Clarke William Hillary (Bill) Clarke (born 5 July 1933 in Toronto, Ontario) was a Progressive Conservative party member of the Canadian House of Commons. He was a Chartered Accountant and businessman by career. , President, Cash Minerals. "This study also takes us a long step closer to achieving our vision of becoming a producing, energy resource company with excellent near and long-term potential." The potential exists to further expand the volume of sales from Division Mountain to Pacific Rim markets. Preliminary market studies have indicated a chronic shortage of metallurgical, thermal and PCI coal into these markets. Cash Minerals has implemented market studies in Japan and South Korea and has already opened up preliminary talks with potential buyers in India. The port of Skagway is well equipped to handle any excess export capacity. Clean Coal Analysis --------------------------------------------------------------------- Wash plant Residual Ash Volatile Fixed Sulphur Calorific Recovery Moisture % Matter Carbon Total Value % % % % % cal/g --------------------------------------------------------------------- 60 1.28 10.65 30.98 57.09 0.58 6795 --------------------------------------------------------------------- The Division Mountain project under study is owned 100% by Cash Minerals Ltd and consists of five Coal leases measuring 776.4 hectares and 22 Territorial Coal Exploration licenses covering 360,000 hectares. The exploration area covers 4,017 square kilometres of coal bearing stratigraphy stratigraphy, branch of geology specifically concerned with the arrangement of layered rocks (see stratification). Stratigraphy is based on the law of superposition, which states that in a normal sequence of rock layers the youngest is on top and the oldest on the . At this time less than 5% of the property has been fully explored. Coal has been mined in areas going back to the early 1900's and used to power river boats on the Yukon River Yukon River River, northwestern North America. Formed by the confluence of the Lewes and Pelly rivers in southwestern Yukon Territory, Can., it is 1,980 mi (3,190 km) long. . There are open outcrops of coal and signs of coal where gopher holes have burrowed into the sides of mountains. An enormous potential exists to add significantly to our current and indicated resources over time. Norwest conducted sensitivity tests on the economic model to determine the impact of changes in coal price, (Power Plant C$45 per tonne ex mine, Export Thermal Coal C$59 F.O.B Skagway, PCI Coal C$130 F.O.B Skagway) transportation costs, total cash mining costs, capital expenditures and port costs. The table below shows the impact of changes in these categories.
Sensitivity Analysis
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Cost Category Change NPV $M IRR%
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Coal Prices - 15% 26.0 33.0
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Transportation Cost +25% 53.7 48.7
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Mining Costs +25% 51.4% 47.6%
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Capital Investment +15% 70.4 52.6
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Port Costs +25% 72.3 58.4
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Sell Only 15% as PCI Coal -10% 47.0 45.1
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Net present value (NPV) was calculated on after-tax cash flows using
a 15% discount rate. Operating costs include:
Overburden removal of C$2.00 per M3
Coal Production $1.60/tonne
Coal preparation of $5.15 /tonne
Reclamation costs of $0.15/tonne
Transportation by truck to the port of Skagway C$21.50/tonne
Environmental studies of approximately C$300,000 are included in the initial capital assumptions. Key factors supporting the development of Cash's Division Mountain project include soaring coal prices and supply shortages, which are widely expected to continue for some time into the future. Further, ongoing growth and development in the Yukon Territory have pushed the local electrical power grid close to capacity and pressure is building to find new generation sources. For example, there are a number of potential new mine openings scheduled in Yukon, and two established mines that closed due to low ore prices in the mid-1990's are also being considered for re-opening. The thermal generating station proposed for construction near the Division Mountain mine mouth is believed to offer a viable and cost-effective solution to meet this rising demand. According to the Scoping Study, the Division Mountain coal could be shipped out of Skagway, an all season port in Alaska, where a bulk storage and loading facility already exists. Shipping coal from this facility to South Korea and Japan saves two and one half sailing days compared with traditional west coast ports. This Scoping Study follows the release of a 43-101 Report on the Division Mountain property (see Cash Minerals Press Release of March 31, 2005) that outlined a resource of 51.6 million tonnes of high Volatile Bituminous "B" coal and noted significant potential for expansion. The table below is reproduced from the 43-101 report prepared by Norwest Corporation. --------------------------------------------------------------------- Measured Tonnes Indicated Tonnes Total Tonnes --------------------------------------------------------------------- 38,553,505 13,041,449 51,594,954 --------------------------------------------------------------------- The Scoping Study was prepared by Gary Stubblefield, P.E. of Norwest Corporation and the 43-101 Report was prepared by T.C. Becker, B.Sc., P. Geo., a qualified person under NI 43-101, also of Norwest. The Division Mountain Coal Project is located approximately 90 km northwest of Whitehorse, the capital and largest community in Yukon Territory. According to the Scoping Study, the deposit has the potential to be economically developed to support coal sales to a proposed mine-mouth 40MW electric generating station, as well as for export to Pacific Rim markets. Significant quantities of cement grade limestone abundant on the property within a few kilometers of the coal source also bear further investigation. This occurrence is considered extremely fortuitous since limestone and coal represent the key components in the manufacturing of Portland cement portland cement Binding agent of present-day concrete. It is a finely ground powder made by burning and grinding a limestone mixed with clay or shale. Its inventor, Joseph Aspdin (1799–1855), patented the process in 1824, naming the material for its resemblance to the . Having both resources so close together provides the potential to dramatically reduce transportation costs, particularly in the event that a cement plant were to be built in the vicinity of the deposits. "We are extremely pleased that Norwest and its experts recognize the potential that we have in the Division Mountain area and we look forward to moving ahead quickly with further technical evaluations, including a Feasibility Study "A Feasibility Study" is an episode of the original The Outer Limits television show. It first aired on 13 April, 1964, during the first season. It was remade in 1997 as part of the revived The Outer Limits series with a minor title change. , on this project," said Bill Clarke. Based upon their investigation, Norwest's conclusions and recommendations include: "The Scoping Study shows a positive rate of return on the Division Mountain Project, thus it bears looking into at a greater level of accuracy. Norwest recommends that Cash conduct a full 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. to analyze resources, revenues and costs in significantly greater detail." CAUTION This study by Norwest Corporation is not adequate to definitively confirm the economics of the Division Mountain Coal Project presented in this press release. The Division Mountain Coal Project. The deposit lies 20 km west of Highway 2 and Yukon's main power grid, and 300 km from the closest tidewater tidewater, in U.S. history, that part of the Atlantic coastal plain between the shoreline and the farthest upstream points in rivers reached by oceanic tides. In many cases the fall line is given as the western boundary. port at Skagway, Alaska. In addition to the exploration work, geologic and economic studies that have been conducted on the project, the Company has also carried out wide ranging environmental surveys in anticipation of application for mining permits as well as extensive consultation with local communities in the region including Champagne and Aishihik First Nations The Champagne and Aishihik First Nations is a First Nation in the Yukon Territory in Canada. Its original population centres were Champagne, Yukon and Aishihik, Yukon, but most of its citizens moved to Haines Junction, Yukon to take advantage of services offered there such as whereby both parties have agreed to consider possible joint venture projects (Division Mountain coal property borders with that of Champagne and Aishihik), municipal, territorial and federal levels of Government. Cash Minerals - An Emerging Energy Resource Company Cash Minerals Ltd., (CHX-TSX Venture Exchange) is an emerging energy resource company with coal assets and uranium exploration properties in The Yukon Territory. In addition to the Division Mountain Coal Project, the Company has a right to earn an interest in six significant Uranium projects in Yukon Territory, including four in the Wernecke Mountain area of northeastern Yukon and hosted in Proterozoic age iron-oxide rich breccia breccia: see conglomerate. breccia Coarse sedimentary rock consisting of angular or nearly angular fragments larger than 0.08 in. (2 mm). Breccia commonly results from processes such as landslides or geologic faulting, in which rocks are fractured. bodies that share numerous textural and mineralogical min·er·al·o·gy n. pl. min·er·al·o·gies 1. The study of minerals, including their distribution, identification, and properties. 2. A book or treatise on mineralogy. similarities to the IOCG IOCG Iron Oxide Copper Gold IOCG International Organization for Crystal Growth deposit (Iron-Oxide- Copper-Gold) model, which include Olympic Dam, Ernest Henry Ernest Henry (May 13 1904 – June 3 1998) was an Australian freestyle swimmer of the 1920s, who won a silver medal in the 4x200m freestyle relay at the 1924 Summer Olympics in Paris. He also competed in the 100m freestyle. and Candelaria. The other two uranium properties, (one in west-central and one in southeastern Yukon), are both hosted in Cretaceous granitic intrusions. These prospects are best viewed as bulk tonnage uranium targets, modeled on the Rossing Deposit in Southern Africa
THE TSX VENTURE EXCHANGE TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. CASH MINERALS LTD. (TSX VENTURE:CHX) |
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