Tamerlane Announces Updated NI 43-101 Reserve Report And Bankable Feasibility Study



    - Feasibility study includes R190 and five other deposits at Pine Point -

    BLAINE, WA, Sept. 10 /CNW/ - Tamerlane Ventures Inc. (TAM: TSX-V) is
pleased to announce the positive results of its bankable Feasibility Study and
NI 43-101 Reserve Report for the Pine Point Project (PPP), located in Canada's
Northwest Territories. The Feasibility Study was completed by Tamerlane's
staff of engineers and geologists, and reviewed by the third party consultants
Pincock Allen and Holt (PAH). The updated NI 43-101 reserve and resource
report was independently generated by PAH. Mr. Stuart Collins, P.Eng., Mr. Don
M. Larsen, Ph.D., P.Eng., and Mr. Barton G. Stone, C.P.G. were the Independent
Qualified Persons for the Mining Section review by PAH. The study results show
the Pine Point Project is feasible and will provide satisfactory returns with
acceptable risk.
    The Feasibility Study covers all aspects of infrastructure development,
mining and processing. As outlined in the Feasibility Study, Tamerlane will
focus first on the R190 deposit, which will utilize a freeze perimeter and
other proven technologies for underground mining operations. The Company will
then use this infrastructure to access a series of five nearby deposits, which
have been upgraded from measured and indicated resources to proven and
probable reserve status.

    
    Highlights (From Pincock Study)

                          (all dollar amounts are US$ except where indicated)
    -------------------------------------------------------------------------
    NI 43-101 compliant mineral inventory
      Proven & Probable Reserves............... 7.8 million tonnes
                                                (6.16% Zn, 3.01% Pb)
      Measured & Indicated Resources:.......... 8.0 million tonnes
                                                (2.26% Zn, 1.13% Pb)
      Inferred Resources:...................... 4.1 million tonnes
                                                (2.36% Zn, 0.82% Pb)
    Historic Resources(*)...................... 50.3 million tonnes
                                                (3.79% Zn, 1.19% Pb)
    Overall Metal Recovery..................... 93.6% Zn, 88.9% lead
    Capital Costs
      Years 1-3................................ $114.1 million (construction)
    Pretax financial analysis
    Internal rate of return (IRR) (PAH)........ 53%
    Net cash flow (PAH)........................ $255 million
    Net present value
     (@ 7.5% discount rate)(PAH)............ $157 million
    -------------------------------------------------------------------------

    (*) Note: a qualified person has not done sufficient work to classify the
        historical resource estimate as current mineral resources, the issuer
        is not treating the historical estimate as current mineral resources
        and the historical estimate should not be relied upon.

    1. Reserves and Resources

       Tamerlane will develop continued mining operations by first starting
       with the R190 deposit and continuing on with the remaining five
       additional nearby deposits which have been upgraded from measured an
       indicated resources to proven and probable reserve status.

       Reserves and resources have been evaluated as indicated in Tables 1-1
       and 1-2. Mining reserves were calculated at 7,790,271 tonnes at 6.16%
       zinc and 3.01% lead. Measured and indicated resources are 8,030,000
       tonnes at 2.26% zinc and 1.13% lead, while inferred resources total
       4,128,000 tonnes at 2.36% zinc and 0.82% lead. Also, an additional
       50,332,000 tonnes of non NI 43-101 compliant historical resources
       contain a combined grade of 4.98% zinc and lead.


                                  Table 1-1
                         Proven and Probable Reserves

    -------------------------------------------------------------------------
                Deposit                  Category    Tonnes      Pb%    Zn%
    -------------------------------------------------------------------------
                                          Proven      647,308   6.10   12.47
                                     ----------------------------------------
                 R-190                   Probable     357,311   3.79    8.27
                                     ----------------------------------------
                                           TOTAL    1,004,619   5.28   10.98
    -------------------------------------------------------------------------
                                          Proven      182,841   4.07    7.78
                                     ----------------------------------------
                 P-499                   Probable     708,811   2.32    5.38
                                     ----------------------------------------
                                           TOTAL      891,652   2.68    5.87
    -------------------------------------------------------------------------
                                          Proven      433,860   3.47    3.92
                                     ----------------------------------------
                 O-556                   Probable     596,398   2.11    3.49
                                     ----------------------------------------
                                           TOTAL    1,030,258   2.68    3.67
    -------------------------------------------------------------------------
                                          Proven    1,625,380   2.61    7.21
                                     ----------------------------------------
                 X-25                    Probable     482,933   1.33    5.11
                                     ----------------------------------------
                                           TOTAL    2,108,313   2.32    6.73
    -------------------------------------------------------------------------
                                          Proven      426,121   3.54    5.89
                                     ----------------------------------------
                 Z-155                   Probable     349,297   1.74    3.96
                                     ----------------------------------------
                                           TOTAL      775,418   2.73    5.02
    -------------------------------------------------------------------------
                                          Proven      960,804   3.57    6.09
                                     ----------------------------------------
                 G-03                    Probable   1,019,207   2.52    3.91
                                     ----------------------------------------
                                           TOTAL    1,980,011   3.03    4.97
    -------------------------------------------------------------------------
                 TOTAL                   Proven +
                                         Probable   7,790,271   3.01    6.16
    -------------------------------------------------------------------------


                                  Table 1-2
                 Measured, Indicated and Inferred Resources

    -------------------------------------------------------------------------
    Deposit      Cutoff Grade %Zn        Category    Tonnes   Lead %  Zinc %
    -------------------------------------------------------------------------
           greater than or equal to 1%   Measured     471,654  1.84%   2.68%
          -------------------------------------------------------------------
    R-190  greater than or equal to 1%   Indicated  1,143,579  1.18%   2.74%
          -------------------------------------------------------------------
           greater than or equal to 1%     Total    1,615,233  1.37%   2.72%
    -------------------------------------------------------------------------
           greater than or equal to 1%   Measured      43,299  0.84%   2.12%
          -------------------------------------------------------------------
    P-499  greater than or equal to 1%   Indicated    530,675  0.76%   1.87%
          -------------------------------------------------------------------
           greater than or equal to 1%     Total      573,974  0.77%   1.89%
    -------------------------------------------------------------------------
           greater than or equal to 1%   Measured     138,362  1.86%   1.88%
          -------------------------------------------------------------------
    O-556  greater than or equal to 1%   Indicated    664,128  1.32%   1.92%
          -------------------------------------------------------------------
           greater than or equal to 1%     Total      802,490  1.41%   1.91%
    -------------------------------------------------------------------------
           greater than or equal to 1%   Measured   2,195,412  0.98%   2.37%
          -------------------------------------------------------------------
    X-25   greater than or equal to 1%   Indicated  1,026,300  0.67%   2.46%
          -------------------------------------------------------------------
           greater than or equal to 1%     Total    3,221,712  0.88%   2.40%
    -------------------------------------------------------------------------
           greater than or equal to 1%   Measured     113,155  0.80%   1.69%
          -------------------------------------------------------------------
    Z-155  greater than or equal to 1%   Indicated    292,419  0.96%   1.90%
          -------------------------------------------------------------------
           greater than or equal to 1%     Total      405,573  0.92%   1.84%
    -------------------------------------------------------------------------
           greater than or equal to 1%   Measured     393,758  2.08%   2.14%
          -------------------------------------------------------------------
    G-03   greater than or equal to 1%   Indicated  1,018,338  1.24%   1.76%
          -------------------------------------------------------------------
           greater than or equal to 1%     Total    1,412,097  1.47%   1.87%
    -------------------------------------------------------------------------
           greater than or equal to 1%   Measured   3,355,000  1.26%   2.34%
    TOTAL -------------------------------------------------------------------
     M&I   greater than or equal to 1%   Indicated  4,675,000  1.04%   2.20%
          -------------------------------------------------------------------
           greater than or equal to 1%     Total    8,030,000  1.13%   2.26%
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Deposit      Cutoff Grade %Zn        Category    Tonnes   Lead %  Zinc %
    -------------------------------------------------------------------------
    R-190  greater than or equal to 1%   Inferred     319,000  1.08%   2.86%
    -------------------------------------------------------------------------
    P-499  greater than or equal to 1%   Inferred     519,000  0.94%   2.62%
    -------------------------------------------------------------------------
    O-556  greater than or equal to 1%   Inferred     627,000  0.88%   1.97%
    -------------------------------------------------------------------------
    X-25   greater than or equal to 1%   Inferred   1,873,000  0.54%   2.52%
    -------------------------------------------------------------------------
    Z-155  greater than or equal to 1%   Inferred     331,000  0.84%   2.18%
    -------------------------------------------------------------------------
    G-03   greater than or equal to 1%   Inferred     459,000  1.52%   1.74%
    -------------------------------------------------------------------------
    TOTAL  greater than or equal to 1%   Inferred   4,128,000  0.82%   2.36%
    -------------------------------------------------------------------------
    (*) Note: Mineral resources that are not mineral reserves do not have
              demonstrated economic viability.


    2. Concentrate production

       Clean commercial zinc concentrate and lead concentrate will be
       produced at Pine Point and trucked to a transload facility in Hay
       River, which is 42 kilometres from the mine site by paved road. At
       the transload facility the concentrate will be unloaded, stockpiled,
       and reloaded onto railcars for shipment to Vancouver Wharfs, and
       ultimately the smelter. The following table shows forecasted
       concentrate production and grades.

                                  Table 2-1
                           Concentrate Production

    -------------------------------------------------------------------------
    Forecast
    Annual          Dry Zn      Dry Pb
    Concentrate      Con.        Con.        Zinc        Lead
    Production      Tonnes      Tonnes      Assay       Assay       Moisture
    -------------------------------------------------------------------------
      Year 1        108,206     43,117      61.8%       71.8%          8%
    -------------------------------------------------------------------------
      Year 2        114,110     43,967      61.8%       71.8%          8%
    -------------------------------------------------------------------------
      Year 3         65,263     34,533      61.8%       71.8%          8%
    -------------------------------------------------------------------------
      Year 4         96,157     30,845      61.8%       71.8%          8%
    -------------------------------------------------------------------------
      Year 5        106,039     29,894      61.8%       71.8%          8%
    -------------------------------------------------------------------------
      Year 6         85,320     34,042      61.8%       71.8%          8%
    -------------------------------------------------------------------------
      Year 7         78,308     39,043      61.8%       71.8%          8%
    -------------------------------------------------------------------------
      Year 8         68,951     34,378      61.8%       71.8%          8%
    -------------------------------------------------------------------------
     Total by
      Year 8        722,409    289,819      61.8%       71.8%          8%
    -------------------------------------------------------------------------

    3. Financial Analysis

       A financial model was developed using capital quotations, estimates
       from suppliers and contractors, operating costs from similar
       operations within Canada and The Western Mine Engineering's mining
       cost service.

                                  Table 3-1
                         Financial Analysis (pre-tax)

    -------------------------------------------------------------------------
                                           2011
                            Pincock,     Macquarie    Tamerlane     Current
                          Allen & Holt   Research    Feasibility     Price
                            Forecast     Forecast       Price       Scenario
    -------------------------------------------------------------------------
    Metals  Zinc              $1.15        $1.20        $1.14        $0.85
     prices -----------------------------------------------------------------
            Lead              $0.96        $1.50        $1.16        $0.85
    -------------------------------------------------------------------------
          IRR                   53%         105%          68%          3%
    -------------------------------------------------------------------------
    Net cash flow
     (US$: millions)           $255         $495         $324         $7.2
    -------------------------------------------------------------------------

       The cash flow model is based on a long term production schedule. The
       ramp up period is 2,300 tonnes per day for the first quarter of
       production, 2,600 tonnes per day for the second quarter, and 2,800
       tonnes per day for the third through fifth quarters, and 3,000 tonnes
       per day in the sixth quarter. The USD/CAD exchange rate was assumed to
       be US$1= CA$1. The weighted average cost of capital,
       calculated to be 7.5%, was applied as the discount rate. The financial
       model assumes 100% equity financing, though the company plans to
       pursue an arrangement of approximately 60% senior debt, 25%
       subordinated debt tied to concentrate off take and the remaining 15%
       financed through equity issue.

                                  Table 3-2
        Cost per Payable Pound Zinc (with lead credits used to reduce
                               operating costs)

    -------------------------------------------------------------------------
              (*)Price  Price         Operating Cost Per Pound of Zinc
                 $/lb   $/lb    ---------------------------------------------
                  Zn     Pb     Mining   Milling  Power/   Freight  Smelting
                                                  Diesel
    -------------------------------------------------------------------------
    Tamerlane    1.00   1.16    0.195     0.067    0.059    0.133    0.187
    PAH          1.00   0.96    0.195     0.067    0.059    0.133    0.180
    Current      1.00   0.85    0.195     0.067    0.059    0.133    0.177
    -------------------------------------------------------------------------


    ----------------------------------
                  Operating Cost Per
                     Pound of Zinc
              ------------------------
              Enviro        (*)(*)$/lb
              Service   NSR    Zinc
                             Produced
    ----------------------------------
    Tamerlane   0.012  0.026    0.680
    PAH         0.012  0.024    0.671
    Current     0.012  0.023    0.666
    ----------------------------------

    (*)    To reflect the effect of lead price on the direct cost of zinc
           production, the market zinc price has been set at $1.00 for the
           purpose of calculating smelter charges.
    (*)(*) Additional Cost per payable pound capital = $0.19.
           Assumes all capital paid off over known reserves contained in this
           43-101.

                                  Table 3-3
                             Sensitivity Analysis

       The zinc and lead prices used were based on 60% historical prices plus
       40% future LME prices. However, the price of zinc was downgraded from
       this estimate from $1.28 per pound to $1.14 per pound and lead was
       calculated at $1.16 per pound. Tamerlane chose to use a lower zinc
       price than was calculated due primarily to the zinc market futures
       outlook stabilizing while lead price expectations show an increase.

       A chart detailing IRR sensitivity to price can be found at
       http://files.newswire.ca/709/Table_3-3.pdf

    4. Capital Costs

       Total capital cost for development and construction of each deposit
       within the PPP are broken down in Table 4-1.

                                  Table 4-1
                           Projected Capital Costs               (US$: 1,000)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
     Activity         Main Mine               Sustaining Capital
                      Site & R-  --------------------------------------------
                         190      P-499    O-556     X-25    Z-155     G-03
    -------------------------------------------------------------------------
    Freezing &
     Infrastructure     $54,529  $15,872  $13,734  $33,713  $12,682  $16,463
    -------------------------------------------------------------------------
    Conveyance
     Systems               $550   $1,040        0   $1,699     $433   $1,372
    -------------------------------------------------------------------------
    Support Equipment
     & Buildings        $21,427   $2,743      $40   $4,447     $406     $426
    -------------------------------------------------------------------------
    Critical Spares        $968     $256     $256     $256     $256     $256
    -------------------------------------------------------------------------
    Mill & Other
     Infrastructure     $24,502     $500     $250   $1,000     $500   $1,000
    -------------------------------------------------------------------------
    Underground
     Utilities & Misc.   $1,770     $876     $709   $1,119     $602     $926
    -------------------------------------------------------------------------
    Subtotal           $103,745  $21,288  $14,989  $42,234  $14,880  $20,443
    -------------------------------------------------------------------------
    10% Contingency     $10,375   $2,129   $1,499   $4,223   $1,488   $2,044
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    TOTAL              $114,120  $23,417  $16,488  $46,458  $16,368  $22,487
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    5. Operating Costs

       The operating costs for the Pine Point Project have been calculated
       first from principles based on actual quotations where possible, and
       from other similar scale projects in Canada.

       A summary of operating costs are broken down annually and by deposit
       as shown in Tables 5-1 and 5-2. In addition, smelting and transport
       costs are summarized in Table 5-3.

                                  Table 5-1
                        Annual Operating Cost Summary

                                                     (US$/metric tonne mined)
    -------------------------------------------------------------------------
    Activity                        Y2       Y3       Y4       Y5       Y6
    -------------------------------------------------------------------------
    Mining                        $31.71   $29.71   $29.48   $29.74   $29.79
    -------------------------------------------------------------------------
    Processing                    $14.13   $11.16    $9.91    $9.91    $9.91
    -------------------------------------------------------------------------
    Power/Diesel                   $9.47    $8.84    $9.19    $9.28    $9.28
    -------------------------------------------------------------------------
    Admin/Tech/Environmental       $2.06    $1.88    $1.83    $1.83    $1.83
    -------------------------------------------------------------------------
    Operating Cost per ton Mined  $57.38   $51.59   $50.41   $50.77   $50.82
    -------------------------------------------------------------------------
    (*) Does not include NSR

                                            (US$/metric tonne mined)
    ----------------------------------------------------------------
    Activity                        Y7       Y8       Y9      TOTAL
    ----------------------------------------------------------------
    Mining                        $30.01   $31.10   $31.10   $30.26
    ----------------------------------------------------------------
    Processing                     $9.91    $9.91    $9.91   $10.43
    ----------------------------------------------------------------
    Power/Diesel                   $8.95    $9.27    $9.27    $9.19
    ----------------------------------------------------------------
    Admin/Tech/Environmental       $1.83    $1.83    $1.83    $1.86
    ----------------------------------------------------------------
    Operating Cost per ton Mined  $50.70   $52.12   $52.12   $51.74
    ----------------------------------------------------------------
    (*) Does not include NSR


                                  Table 5-2
                         Operating Costs by Deposit

                ----------------------------------------------
                 Deposit  Operating Costs  Freight & Smelting
                ----------------------------------------------
                  R-190        $56.49            $90.60
                ----------------------------------------------
                  P-499        $49.85            $48.82
                ----------------------------------------------
                  O-556        $50.56            $35.27
                ----------------------------------------------
                   X-25        $50.82            $52.42
                ----------------------------------------------
                  Z-155        $50.62            $43.82
                ----------------------------------------------
                   G-03        $52.12            $44.93
                ----------------------------------------------


                                  Table 5-3
                         Freight and Smelting Summary

            ----------------------------------------------------
            ----------------------------------------------------
                    Payable Zinc       85%  Zn metal produced
            ----------------------------------------------------
                    Payable Lead       95%  Pb metal produced
            ----------------------------------------------------
            ----------------------------------------------------

                           Zinc Treatment Charges
            ----------------------------------------------------
                 Base Charge- Zn   $300.00  /dmt concentrate
            ----------------------------------------------------
                   Escalator- Zn     $0.10  /$1 over $3,000/MT
            ----------------------------------------------------
                    Deflator- Zn     $0.08  /$1 under $3,000/MT
            ----------------------------------------------------

                           Lead Treatment Charges
            ----------------------------------------------------
                 Base Charge- Pb   $160.00  /dmt concentrate
            ----------------------------------------------------
                   Escalator- Pb     $0.07  /$1 over $1,500/MT
            ----------------------------------------------------
                    Deflator- Pb     $0.08  /$1 under $1,500/MT
            ----------------------------------------------------
            ----------------------------------------------------
             Smelter Cost- Zn      $261.06  /dmt Zn concentrate
            ----------------------------------------------------
             Smelter Cost- Pb      $234.01  /dmt Pb concentrate
            ----------------------------------------------------
             Freight               $153.80  /wmt concentrate
            ----------------------------------------------------

            ----------------------------------------------------
            ----------------------------------------------------


                                 Figure 5-4
                               Project Schedule

    To view Figure 5-4, "Project Schedule", please visit the following URL:
    http://files.newswire.ca/709/Figure_5-4.pdf
    

    Ross Burns, President and CEO, said: "We are pleased to have finalized
the feasibility study. This document and accompanying NI 43-101 technical
report produced by Pincock, Allen and Holt will be used to procure the
financing necessary to put the project into production. It must be noted that
even at today's depressed metals prices the project is better than break even.
As the industry slows down and other producers shut down Tamerlane will be
able to procure equipment and contractors at more aggressive pricing than used
in the study. It is our objective to finalize a financing package this fall
with anticipation that construction will commence soon thereafter. Given this
time table the project will be producing concentrates by early 2010. It is
also worth noting that the reserves outlined in this feasibility study are a
small percentage of the overall potential of the project. The project has an
additional 50 million tonnes of historic resources still not verified. Further
excitement will be generated from potential new deposits which may be
discovered, such as the recently discovered mineralized zone between deposits
M67 and L65. Regarding financing, a confidential information memorandum has
been prepared to present to banking and other financial institutions, with all
of the Company's resources now dedicated to preparing for the construction and
development phase."

    Investor Conference Call

    The Company will host an investor conference call regarding completion of
the positive Feasibility Study and reserve report for the Pine Point Project.
    The conference call will be held on Friday, September 19 at 11:00 a.m.
Pacific time (2:00 p.m. Eastern time) to discuss details of the Feasibility
Study and reserve report. Mining analysts, investors and the media are invited
to phone 1-800-779-1304, or 1-212-287-1820 if outside Canada and the U.S.A.,
followed by the pass code 6323402 approximately 5 minutes before the start of
management's presentation. The presentation will be followed by a question and
answer period. A replay of the conference call can be heard through Friday,
September 26 by dialing 1-866-430-8792, or from outside North America
1-203-369-0939.

    "Ross F. Burns"

    President & CEO

    
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the contents of this press
    release.
    

    Caution Concerning Forward-Looking Information

    This press release contains forward-looking information within the
meaning of applicable securities laws. We use words such as "may", "will",
"should", "anticipate", "plan", "expect", "believe", "estimate" and similar
terminology to identify forward-looking information. It is based on
assumptions, estimates, opinions and analysis made by management in light of
its experience, current conditions and its expectations of future developments
as well as other factors which it believes to be reasonable and relevant.
Forward-looking information involves known and unknown risks, uncertainties
and other factors that may cause our actual results to differ materially from
those expressed or implied in the forward-looking statements and accordingly,
readers should not place undue reliance on those statements. Risks and
uncertainties that may cause actual results to vary include but are not
limited to the speculative nature of mineral exploration and development,
including the uncertainty of reserve and resource estimates; operational and
technical difficulties; the availability to the Company of suitable financing
alternatives; fluctuations in zinc, lead and other resource prices; changes to
and compliance with applicable laws and regulations, including environmental
laws and obtaining requisite permits; political, economic and other risks
arising from our activities; fluctuations in foreign exchange rates; as well
as other risks and uncertainties which are more fully described in our annual
and quarterly Management's Discussion and Analysis and in other filings made
by us with Canadian securities regulatory authorities and available at
www.sedar.com.




For further information:

For further information: Brent Jones, Manager of Investor Relations,
E-mail: bjones@tamerlaneventures.com, Phone: (360) 332-4653, Fax: (360)
332-4652, Website: www.tamerlaneventures.com

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