Tuesday, September 18, 2012
Global Hunter Announces Results of Preliminary Economic Assessment and Updated Resource Estimate for Las Posadas Copper Deposit, La Corona de Cobre Project, Chile
Vancouver, British Columbia - Global Hunter Corp. (TSX.V: BOB)("Global Hunter" or the "Company") is pleased to announce results of a preliminary economic assessment ("PEA") on an updated resource estimate for the Las Posadas copper deposit at its La Corona de Cobre project. Highlights
? Base Case NPV (5%) of $79.6 million
? Base Case IRR of 75.4%
? Estimated capital costs of $75 million
? Mining rate of 8,500 tonnes per day
? Base Case copper production of 105.2 million pounds over
mine life of 3.75 years
"We are very pleased with the Preliminary Economic Assessment
provided by GeoVector, which is an important milestone for
Global Hunter." stated Rudy Brauer, President and CEO of
Global Hunter Corp. "The Base Case NPV (5%) of $79.6 million
was based on a copper price of $3.25 per pound. At $3.50 per
pound copper, the project NPV (5%) increases to $103.7
million. Our goal is to continue progressing towards
production with the implementation of feasibility level
studies at Las Posadas while we explore additional
exploration targets at the La Corona de Cobre project."
A preliminary evaluation of the potential economic viability
of the Las Posadas Deposit has been prepared by GeoVector
Management Inc. ("GeoVector") of Ottawa, Ontario. For the
purposes of this study, it was assumed that open pit mining
at a rate of 8,500 tpd, with processing by heap leaching of
soluble copper with the SX-?EW process would be employed to
exploit the resource. To optimise the Deposit, Gemcom Whittle
was used to identify the pit that will maximise the cash flow
from the operation.
Base Case Sensitivity Analysis |
Copper Price per lb $3.25 $3.00 $3.50 $3.75 |
Pit No. 36 36 36 36 |
Mine Life (years) 3.75 3.38 4.33 4.66 |
Strip Ratio 3.23 3.19 2.97 2.88 |
Total Mined Rock 43,815,197 39,108,501 47,457,772 49,804,121 |
Waste Mined 33,442,256 29,777,594 35,475,918 36,918,886 |
Process Tonnes 10,373,117 9,331,064 11,982,056 12,885,441 |
CuS (%) Insitu 0.575 0.602 0.530 0.501 |
CuS (%) Recovered 0.460 0.482 0.424 0.401 |
CuS (lbs) Insitu 131,494,299 123,839,007 140,002,895 142,320,289 |
CuS (lbs) Recovered 105,195,439 99,071,206 112,002,316 113,856,231 |
Discounted Cash Flow $ 79,648,000.00 $ 56,601,000.00 $ 103,784,653.00 $ 128,822,880.00 (Best) |
Internal Rate of Return 75.4 57.5 89.6 104.29 % (Best) |
* Mineral resources that are not mineral reserves do not have
demonstrated economic viability. The
PEA is preliminary in nature, and is based partially on
Inferred mineral resources that are considered too
speculative geologically to have the economic considerations
applied to them that would enable them
to be categorized as mineral reserves. There is no certainty
that the PEA will be realized.
The base case Whittle pit optimisation was completed at a
copper price of $3.25/lb and a recovery rate of 80% of
soluble copper. The copper price of $3.25/lb approximates the
3 year trailing average (2009-?
2011). The recovery rate of 80% CuS is based on recent
metallurgical test work completed by Global
Hunter. Pit design, and capital and operating costs were
provided by Global Hunter and approved by
GeoVector.
Based on the resource model and inputs at the time of
optimization, including a $3.25/lb copper price
an initial $75 million capital expenditure, it was identified
that 10.4 Mt at a grade of 0.575 CuS would be extracted from
an open pit. A strip ratio is in the order of 3.23 (~3:1). A
mine life of 3.75 years is based on an estimated mill rate of
8,500 tpd. The pit results in a discounted cash flow of $79.6
million. All of the material within the pit fell within the
oxidized domain, and approximately 94 % of the material
within the pit is categorized as Indicated mineral
resource.
As a test to the sensitivity of the economic viability of the
Deposit to changing copper price, additional Whittle pit runs
were completed at copper prices of $3.00, $3.50 and $3.75. As
is expected, an increase in the copper price resulted in an
increase in the mine life, a decrease in the strip ratio, and
an increase in pounds of soluble copper produced, as well as
improved discounted cash flow and an improved internal rate
of return.
Prior to conducting the PEA, GeoVector completed a revised resource estimate at Las Posadas, the details of which are tabulated below:
Oxide Zone
Total Cu (%) | Indicated | Inferred | ||||||||
Total Cu (%) | Tonnes | TCu (%) * | SCu (%) ** | Tonnes | TCu (%) * | SCu (%) ** | ||||
Cut-?off | Tonnes | Grade | lbs | Grade | lbs | Tonnes | Grade | lbs | Grade | Lbs |
0.10 % | 28,438,896 | 0.51 | 317,005,277 | 0.30 | 190,302,869 | 2,937,446 | 0.34 | 21,959,603 | 0.19 | 12,408,826 |
0.15 % | 26,116,251 | 0.54 | 310,545,714 | 0.33 | 188,304,539 | 2,611,971 | 0.37 | 21,058,011 | 0.21 | 12,145,408 |
0.20 % | 23,157,060 | 0.59 | 299,097,620 | 0.36 | 183,991,873 | 2,174,727 | 0.41 | 19,417,474 | 0.24 | 11,653,387 |
0.25 % | 20,036,240 | 0.64 | 283,625,224 | 0.40 | 176,959,794 | 1,524,192 | 0.48 | 16,198,588 | 0.30 | 10,203,924 |
0.30 % | 17,132,310 | 0.70 | 266,076,803 | 0.45 | 168,401,437 | 1,131,129 | 0.55 | 13,827,180 | 0.37 | 9,236,329 |
0.35 % | 14,696,511 | 0.77 | 248,667,128 | 0.49 | 159,364,589 | 721,862 | 0.69 | 10,917,818 | 0.49 | 7,779,524 |
0.40 % | 12,589,372 | 0.83 | 231,289,565 | 0.54 | 150,130,852 | 551,645 | 0.78 | 9,493,615 | 0.57 | 6,963,960 |
Sulphide Zone
Total Cu (%) | Indicated | Inferred | ||||
Total Cu (%) | Tonnes | TCu (%) * | Tonnes | TCu (%) * | ||
Cut-?off | Tonnes | Grade | lbs | Tonnes | Grade | lbs |
0.10 % | 5,341,114 | 0.47 | 55,079,350 | 16,918,882 | 0.45 | 167,682,461 |
0.15 % | 4,819,246 | 0.51 | 53,643,194 | 16,060,182 | 0.47 | 165,133,629 |
0.20 % | 4,038,383 | 0.57 | 50,676,696 | 14,274,363 | 0.50 | 158,351,221 |
0.25 % | 3,552,109 | 0.62 | 48,276,625 | 10,788,595 | 0.59 | 140,443,308 |
0.30 % | 3,112,095 | 0.67 | 45,616,671 | 7,333,713 | 0.74 | 120,323,097 |
0.35 % | 2,741,607 | 0.71 | 42,964,514 | 6,688,857 | 0.78 | 115,655,285 |
0.40 % | 2,259,212 | 0.78 | 38,970,625 | 6,078,349 | 0.83 | 110,631,973 |
* TCu (%) - Total Copper
** SCu (%) - Soluable Copper
The Las Posadas updated mineral resource estimate is based on
47 Reverse Circulation (RC) and 35 diamond drill holes (NQ)
totaling 18,884 metres, with 8,596 assays. Holes were drilled
by Global Hunter and others in six drill campaigns conducted
between 1994 and 2007. These 82 drill holes are spaced
primarily 50 to 100 metres apart along a strike length of
approximately 1,700 metres. The drill holes primarily tested
to a vertical depth of 150 to 200 metres, with a few holes
testing to a vertical depth of
300 metres in the central parts of the deposit.
Geological models were constructed of the copper oxide and
copper sulphide mineralized zones. The models were used to
constrain the composite values chosen for interpolation, and
the ore blocks reported in the mineral resource. A block
model with block dimensions of 5 x 5 x 2 metres in the x, y
and z directions was placed over resource model solids with
only that proportion of each block below the
topographic/overburden surface and inside the solid recorded.
Grades for Total Copper (TCu %) and
Soluble Copper (SCu % )were interpolated into the blocks by
the inverse distance squared (ID2) method using a minimum of
4 and maximum of 20 composites (within a minimum of two drill
holes) to generate block grades in the Indicated category and
a minimum of 2 and maximum of 20 composites to generate block
grades in the Inferred category.
Two metre composite samples were used in the resource
estimation. An average specific gravity (SG) of
2.77 was used for the copper oxide resource estimate and an
SG value of 2.89 was used for the copper sulphide resource
estimate. SG values are based on SG testing of representative
core from the copper oxide (379 samples) and copper sulphide
(160 samples) zones. Gemcom GEMS 6.3 software was used to
complete the resource estimate.
The updated Indicated and Inferred mineral resource estimate
was prepared by GeoVector and is reported in accordance with
Canadian Administrator's 43-?101 and was estimated in
conformity with generally accepted CIM "Estimation of Mineral
Resource and Mineral Reserves Best practices" guidelines,
including the critical requirement that all mineral resources
"have reasonable prospects for economic extraction".
Allan Armitage, PhD., P.Geol., and Joe Campbell, B.Sc., P.
Geo., of GeoVector Management Inc., is responsible for the
technical comments related to the resource estimate and PEA
and its parameters and is an "independent qualified person"
for the purposes of National Instrument 43-?101 Standards of
Disclosure for Mineral Projects of the Canadian Securities
Administrators and has verified the data disclosed in this
release.
A technical report in support of the PEA and revised resource
estimate will be filed on SEDAR within 45 days.
Global Hunter proposes to move forward with pre-?feasibility
level studies which will include infill drilling in order to
bring all leach pad material within the pit boundaries to
indicated or measured resource categories. This will also
supply samples for further metallurgical testing. Other work
will include environmental baseline monitoring, engineering
studies of important infrastructure aspects including power
supply, water supply and transportation as well as
geotechnical and labour and equipment cost studies.
In addition, the Company plans to drill test several nearby
shear zones. If successful, these targets could be developed
into additional mineral resources.
Rudy Brauer,
President and CEO, Global Hunter Corp.
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policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained herein may constitute forward-?looking statements and are made pursuant to the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. Forward-?looking statements are statements that relate to future events. Such statements include estimates, forecasts and statements as to management's expectations with respect to, among other things, business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, objectives and expectations, including with respect to production, exploration drilling, reserves and resources, exploitation activities and events or future operations. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward-?looking statements, as it constitutes a prediction of what might be found to be present when, and if, a project is actually developed.
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