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Axmin Files NI 43-101 Technical report Passendro Gold Project Revalidated Feasibility Study Report and Axmin Closes Kofi Sale To Avion Gold Corporation of Walia Saakola And Of Walia West Consessions |
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Monday, 21 March 2011 11:05 |
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AXMIN Inc. announced that today it has filed the revalidated feasibility study summary report with respect to the Passendro Gold Project located in the Central African Republic, the results of which were released on January 31, 2011.
A copy of the NI 43-101 compliant report has been filed with securities and regulatory authorities in Canada and can be found by click here.The Feasibility Study was led by SENET (PTY) of South Africa (“SENET”) and included a multidisciplinary team of independent consultants. Highlights of the robust project that will see an annual production of 205,000 ounces with an average cash cost of US$437/oz in the first three years, resulting in a rapid project payback of 2.2 years, are detailed below. Feasibility Study Highlights |
Assumed Gold Price | US$1,100/oz |
Assumed Oil Price | US$80/bbl |
Mine Throughput | 2.8 mtpa |
Mine Life | 8.3 years |
Development & Construction | 24 months |
Strip Ratio | 5.4:1 |
Average Annual Production years 1-3 | 205,000 oz |
Average Annual Production (LOM) | 163,000 oz |
Initial Capital Costs (excluding contingency) | US$246 million |
Total Cash Costs (including royalties) (LOM) | US$484/oz |
Average Metallurgical Recovery | 94% |
Gravity Recovery | 30% |
IRR (after tax & royalties, including contingency CAPEX) | 32.1% |
NPV (after tax, 5% discount) | US$340 million |
Operating Cash Flows | US$493 million |
Payback Period | 2.2 years |
AXMIN Closes Kofi Sale to Avion Gold – Walia Saakola and Walia West Concessions
AXMIN is also announced that it has completed the sale of its interest in the Walia Saakola concession and the Walia West Concession, which formed part of AXMIN’s Kofi Property, to Avion Gold Corporation (AVR – TSX) (“Avion”). On closing Avion paid AXMIN C$6,250 and 56,250 Avion common shares, representing 25% of the total consideration due to AXMIN for sale of these concessions. The remaining 75% will be paid to AXMIN in three equal tranches on June 11, 2011, March 11 2012 and September 11, 2012. This press release has been reviewed by an in-house qualified person, François Auclair, M.Sc., VP Exploration of AXMIN, Member of the Ordre des Géologues du Québec and Fellow of Geological Association of Canada.
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Last Updated on Monday, 21 March 2011 10:19 |
