31st Oct 2005 07:00
Minco PLC31 October 2005 31 October 2005 Minco plc ("Minco" or "the Company") Completes Bankable Feasibility Study onLaguna Zacatecana silver project, Mexico. • 20.4 million ounces Silver Equivalent production • 1.3 million tonnes per annum throughput over 7 years AIM traded precious and base metals developer Minco plc (MIO) today announcesthe results of its bankable feasibility study on the Laguna Zacatecana silvertailings project in Mexico. Matthew Dorman, CEO, stated today "Completion of the bankable study for theLaguna Zacatecana silver project in Mexico is a milestone for the company. Theproject shows excellent returns with baseline IRR of 46% and NPV of $24 Millionat a 10% discount. With continued buoyancy in the silver market and analysts'predictions of continued metal value increases in the coming years, we are wellplaced to benefit. We have already had a number of positive discussions with commercial banks inLondon regarding the project, and will be concluding discussions on the back ofthe bankable study." The study, completed by Toronto based MICON International, can be summarised asfollows: Initial Capital Requirement: $21.6 millionPre tax average annual operations profit: $11.8 millionAverage Annual Silver Equivalent production Year 1 - 4: 3.49 million ounces Year 5 - 7: 2.16 million ounces Economic highlights from the study include: IRR NPV @5% discount NPV @10% discountBase Case* 45.9% $32,628,000 $23,919,000Upside Case** 54.3% $39,980,000 $29,968,000 * Silver $7.25 per ounce; Gold $425 per ounce; Mercury $625 per flask** Silver $7.70 per ounce; Gold $475 per ounce; Mercury $650 per flask The tailings, part of the tens of millions produced during Spanish colonialtimes, lie on the bed of the Laguna Zacatecana, a reservoir 10 km from the statecapital of Zacatecas in Central Mexico. Minco will extract the tailings fromthe reservoir bed by means of dredging followed by leaching and production ofdore metal which will be sold onto the international market. The Company has also secured agreements to sample and extract land based silvertailings from the immediate lake area which have been previously independentlyestimated as being up to the same size as the lake based reserves. Detailed construction engineering will now follow with the objective of theproject being production ready in 2006. For further information Matthew Dorman; CEO, MincoTel: +44 (0) 207 947 3237 Email: mldorman@minco.ie Roger Turner; Chairman, Minco,Tel +44 (0) 1273 495 500 E-mail: rwturner@minco.ie Laurence Read / Amanda Harris, ConduitPR+44 (0) 207 618 8707 / +44 (0) 7979 955 923 MINCO is a precious and base metals development and exploration company tradedon the AIM market in London. Ticker symbol (MIO), www.minco.ie This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Minco PLC