Shares Issued and Outstanding: 53,829,578
Production for first 5 years boosted to 60,000 tonnes per day
Potential for mine life to exceed 15 years
TORONTO and LIMA, Peru, Aug. 20 /CNW/ - Norsemont Mining Inc. (the
"Company") (TSX and BVL: NOM) today provided an update on the ongoing
Definitive Feasibility Study for the Constancia copper-molybdenum-silver
project in southern Peru.
- Milling rate for the first 5 years of production boosted to
60,000 tonnes per day due to softer supergene ore.
- Hypogene milling rate during the next 10 years expected to be
50,000 tonnes per day.
- Production during the first five years expected to exceed
90,000 tonnes per annum of copper in concentrate.
- Mine life expected to exceed 15 years.
- Twenty five tonne pilot plant metallurgical test to be conducted to
optimise copper flotation and concentrate production.
- Molybdenum concentrate will be extracted from pilot plant test to
confirm design criteria for the molybdenum circuit.
- Updated resource estimate expected by early Q1 2009
- Definitive Feasibility Study scheduled for completion during second
quarter of 2009.
Robert Baxter, Norsemont's President and Chief Operating Officer said:
"Progress with the Constancia Feasibility study has been very encouraging.
This has been complimented by the successful infill drilling at Constancia,
which will be completed after a 25 tonne bulk metallurgical sample has been
taken by drilling. Based on our latest projections we believe the potential
exists for a material increase in the Constancia resource, which will
contribute to an extension of the projected mine life beyond fifteen years".
Constancia Feasibility Team
The Constancia feasibility team includes GRD Minproc (resource modeling,
mining, processing and metallurgy), Knight Piesold (tailing and waste
management, water management and geotechnical), CESEL (power) and SIGT (access
road). Management of the definitive feasibility study falls under Sean
Spraggett, Norsemont's General Manager based in Lima, Peru.
Resource estimate and mining study
- Geotechnical drilling in and around the planned Constancia - San
Jose open pit is nearing completion
- Ultimate pit and stage designs completed and individual pit stage
inventories are under review.
- An initial mining and processing schedule has been prepared with an
integral cash flow model.
- Annual mining rates and grades for the supergene, skarn and hypogene
ores have been completed.
- Alternative plant site selection and haulage distance calculations
are under review.
- Major mining equipment shipping dimensions and weights, capital
expenditure and operating cost data have been compiled.
- Initial mining cost estimates, mine scheduling and owner cost
schedules have been prepared.
- Process design of the grinding circuit nearing completion.
- The proposed circuit consists of a 38 ft. diameter by 22 ft. long
SAG mill with wrap-around motor. Installed power will be 19.4 MW. A
pebble crusher and two ball mills 24 ft. diameter by 40 ft. long,
each with 13 MW motors, will be installed. Total grinding power will
be 50 MW.
- Grind optimisation tests for flotation have been completed.
- Twenty-five tonnes of ore will be campaigned through a third-party
pilot plant. The focus of testing will be on optimising copper
flotation and production of sufficient concentrate to obtain design
data on regrinding, filtration and thickening. Sufficient copper
concentrate will be floated to allow laboratory-scale test work to
produce molybdenum concentrate and confirm the design criteria for
the molybdenum circuit.
- Plant copper recovery of 89% is consistent with ongoing test work
- Two alternative site locations for the mill processing facilities
have been sterilised and cleared for geotechnical investigations.
- Preliminary camp layout based on accommodation for 400 people
currently under review.
- Geometric road design completed for the Livitaca - Constancia
section. Design of the Yauri -Livitaca section underway.
- Identification of suitable quarries for road construction materials
- Preliminary design checks of existing bridges commenced.
- Road traffic and hydrology studies completed.
- Design of the power transmission line route from Tintaya underway
and a topographical survey of the transmission route completed.
Commenting, Norsemont's CEO Patrick Evans said: "In addition to the
impressive progress with the definitive feasibility study, Norsemont has
completed the acquisition of the surface rights over four commercial farms at
Constancia. This is of significant strategic benefit to the Company as it
provides us flexibility in relation to the location of the surface
infrastructure. Although we enjoy good relations with the two communities in
the vicinity of Constancia, ownership of the private surface rights enables us
to minimize the impact on these communities".
Mr. Evans added: "We have also been successful in increasing our mineral
property position at Constancia from the original 5,140 hectares to over
20,000 hectares. As we have completed infill drilling at Constancia we have
now relocated a number of our drill rigs to a newly discovered anomaly to the
south east of Constancia where drilling is currently underway. Based on recent
exploration success we believe the potential exists to increase the Constancia
copper resource to between 600 million and 800 million tonnes, which would
significantly increase the Constancia mine life."
About Norsemont Mining
Norsemont Mining is a Canadian mineral exploration and development
company focused on the 100%-controlled Constancia Cu-Mo-Ag-Au deposit in
southern Peru. The Constancia Project currently has a 43-101 compliant
indicated resource of 256.3M tonnes at 0.50% Cu (2.85 Billion lbs Cu) and an
inferred resource of 156.5M tonnes at 0.33% Cu (1.15 Billion lbs Cu). Mineral
resources that are not mineral reserves do not have demonstrated economic
A 43-101 compliant scoping study titled "Preliminary Assessment of the
Constancia Project, Department of Cusco, Peru" and dated December 11, 2007
using the previous resource block model anticipates a project producing in
excess of 90,000 tonnes of copper annually. That study indicated the project
has a net present value of up to $530 million and an internal rate of return
of 25.3 percent, both including a 25% contingency. The following long-term
commodity price assumptions used in the study: copper $1.80 per pound,
molybdenum $12 per pound and silver $11 per ounce. If a revised price deck of
copper $2.00 per pound, molybdenum $15 per pound and silver $10.50 per ounce
is used in the same Discounted Cash Flow Model the net present value increases
to $746 million and an internal rate of return of 31% (including a 25%
contingency) based on the 55,000 tpd production case. The full study, dated
December 11, 2007, and is available for viewing on SEDAR.
The technical information provided in this press release was reviewed and
approved by Robert. W. Baxter (MAusIMM), the President and a director of the
Company and a qualified person for the purposes of National Instrument 43-101.
For further information:
For further information: Patrick Evans, CEO, Phone: (416) 670-5114, Fax:
(416) 408-4077, E-Mail: firstname.lastname@example.org, Web Site: www.norsemont.com