7th Feb 2005 07:00
Minco PLC07 February 2005 MINCO plc ("Minco" or "The Company") Minco awards Bankable Study for Laguna Zacatecana Silver Project. London: 07 Feb 2005: AIM quoted precious metals developer Minco plc todayannounces that it has awarded the contract for the bankable study for the Lagunasilver tailings project to MICON International of Toronto, Canada. The tailings, forming the bed of the Laguna Zacatecana, near the city ofZacatecas in Mexico, are a result of Spanish colonial silver extraction weresubject to an initial feasibility study in 2004, also completed by MICON, whichindicated a robust project with the following economic characteristics. • Total silver equivalent production of 18 million ounces • Total reserves of 7.6 million tonnes • Project life of 8 years from lake based tailings at 1 million tonne per annum production • Operating costs of US $2.28 per ounce silver equivalent • Operating profit of $10 million per annum • An internal rate of return in excess of 46% • Net present value at 5% discount of US $37 million, at 10% discount US$ 26.5m pre tax • Total pre-production capital expenditure of US $19.4 million. Subsequent to the Laguna feasibility study, completed in November 2004, Mincohas carried out an additional confirmatory drill programme designed to improveresource classification. The company has also submitted the project study toSEMERNAT, the Mexican environmental agency, for final operating permitting andexpects to receive the go ahead in the coming weeks. Speaking today Matthew Dorman, CEO stated: "With the Bankable Feasibility study now underway, we expect the Laguna silverproject will be construction ready in 2005 with first silver production in 2006.MICON International has been intimately involved with the Laguna project sinceits inception and I believe they are the appropriate consultants to make athorough examination of the project in a timely and professional manner." The study is expected to be completed in 6 months. Minco continues to develop its other holdings in Mexico, primarily the MineraSisa high grade gold silver project where ongoing exploration results have beenvery encouraging. Matthew Dorman, CEO.Tel: +34 687 494550 Email: [email protected] Roger Turner, Chairman.Tel +44 (0) 1273 495500 E-mail: [email protected] Laurence Read / Amanda Harris, Conduit PR+44 (0) 207 936 9095 / +44 (0) 7979 955 923 E-mail: [email protected] MINCO is a precious metals development and exploration company traded on the AIMmarket in London. Ticker symbol (MIO. www.minco.ie This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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