Norsemont Mining Announces Constancia Scoping Study Results

    NPV Ranges from $396M to $618M. IRR Ranges from 20.9% to 31.8%.

    Shares Issued and Outstanding: 37,912,878
    TSX: NOM
    BVL: NOM

    VANCOUVER and LIMA, Peru, Nov. 5 /CNW/ - Norsemont Mining Inc. ("the
Company") (TSX: NOM, BVL: NOM) today announced that SRK Consulting (SRK) has
completed the scoping study for Constancia copper project in southern Peru.
The scoping study considers an open pit mining operation using a standard
milling and froth flotation plant to produce high grade copper and molybdenite
concentrates. The study is based on geological information and metallurgical
testing available at the time of reporting, price quotations for major
equipment and mining components, including owners' fleet, and estimates of
long-term prices for copper, molybdenum and silver. Exploration drilling at
the Constancia project is continuing and the Company believes that the
potential exists to significantly increase the current resource.
    For economic evaluation purposes, the scoping study focused on three
operating scenarios: a 30,000 tonne per day (t/d) stand-alone case (SA), a
30,000 t/d expandable to 55,000 t/d case (EX), and a 55,000 t/d stand-alone
case (SA). Based on the current resource, the corresponding life of mine (LOM)
for the 30,000 t/d and 55,000 t/d stand alone cases are 20 and 12 years,
    Estimated production for the 55,000 t/d SA case is approximately
112,218 tonnes per year of copper recovered over the first five years, with a
LOM annual average production of 90,411 tonnes. For the 30,000 t/d SA case
estimated production is 72,814 tonnes per year of copper recovered during the
first five years, with a LOM annual average of 53,598 tonnes. During the
feasibility study the expansion of the 30,000 t/d EX case to 55,000 t/d in
year 6 or 7 will be reviewed together with the 55,000 t/d SA case.
    Based on a discount rate of 8 percent and a payback period which
incorporates a two year start up, the Constancia project's Internal Rate of
Return (IRR) and corresponding Net Present Value (NPV) for the three operating
scenarios are as follows:

    Description       30,000 t/d SA       30,000 t/d EX        55,000 t/d
                                With                With               With
                    Without     25%     Without     25%     Without    25%
                  Contingency   Cont.    Cont.      Cont.    Cont.     Cont.
    NPV @ 8%         $473M     $404M     $467M     $396M     $618M     $530M
    IRR              26.7%     21.4%     26.1%     20.9%     31.8%     25.3%
    Payback  from
     start of
     construction  6 years   7 years   6 years   7 years   5 years   6 years
    Note:  The cash flow values presented account for post tax and royalty

    The cash flow analysis used long-term price assumptions of $1.80 per
lb Cu, $12 per lb Mo, and $11 per oz Ag. To provide an appreciation of the
influence of metal prices to the project cash flow, a sensitivity analysis has
been conducted modifying the copper price. The results of the sensitivity
analysis based on copper prices at $1.60 per lb, $1.80 per lb and $2.00 per lb
are as follows:

    Description   30,000 t/d SA        30,000 t/d EX        55,000 t/d
    Cu price   $1.60  $1.80  $2.00  $1.60  $1.80  $2.00  $1.60  $1.80  $2.00
    NPV @ 8%   $255M  $404M  $552M  $247M  $396M  $544M  $345M  $530M  $715M
    IRR          17%  21.4%  25.5%  16.5%  20.9%  24.9%  19.9%  25.3%  30.3%
    Payback from
     start of
     tion        8      7      6      8      7      6      7      6      5
               years  years  years  years  years  years  years  years  years
    Note: 1.  Cash flow values are presented accounting for a 25% overall
              contingency and discount rate of 8%.
          2.  The cash flow values presented account for post tax and royalty

    Cash operating costs net of credits are estimated at $0.74 per lb over
the 20-year project life for the 30,000 t/d SA case and $0.67 per lb over the
12-year project life for the 55,000 t/d SA case. Capital expenditure estimates
(inclusive of a 25 percent contingency) for the three operating scenarios are
US$605.6M, US$617.3M and US$739.7M for the 30,000 t/d SA, 30,000 t/d EX to
55,000 t/d and 55,000 t/d SA, respectively.
    Based on the positive results of the scoping study, Norsemont will now
advance the Constancia project to feasibility. Negotiations with engineering
consultants for the feasibility study and environmental impact assessment are
underway and formal contracts are expected to be finalised by the end of the
    During the next several months, detailed budgeting and preliminary
geotechnical field programs will be undertaken to establish a firm foundation
for the feasibility study, which is expected to commence during the second
quarter of 2008. Infill drilling on the Constancia and San Jose zones is
continuing, with the conclusion of the 42,000-meter program expected by
year-end. Exploration drilling at the Constancia project will continue during
2008 and the Company believes that the potential exists to significantly
increase the current resource.

    Norsemont Mining Inc.

    Norsemont Mining is a Canadian mineral exploration and development
company focused on the Constancia Cu-Mo-Ag deposit in southern Peru, 70
percent of which has been optioned from Rio Tinto Plc and 30 percent of which
has recently been acquired from Mitsui. The Constancia Project has a 43-101
compliant indicated resource of 70M tonnes (0.8 Billion lbs Cu) and an
inferred resource of 250M tonnes (2.8 Billion lbs Cu).

    Constancia Project

    The Constancia project is located approximately 600 kilometers southeast
of Lima, within the Yauri-Andahuaylas metallogenic belt, hosting several large
copper-molybdenum-silver and gold porphyry deposits including Antapaccay
(Xstrata) and Los Chancas (Grupo Mexico), as well as copper skarn deposits
including Tintaya (Xstrata) and Las Bambas (Xstrata). The property is accessed
by several roads, and is within 60 kilometers of a railroad. Elevation ranges
from 4,000 to 4,700m, and several small permanently flowing rivers are present
in the area.

    Qualified Persons and Data Verification

    The independent Qualified Persons (QP) for the purpose of National
Instrument 43-101, Standards of Disclosure for Mineral Projects, who have
reviewed and approved this release, are:

    (a) for the copper project (Scoping Study): (i) Razl Paredes L.(mining
        reserve estimates, mine plan, mine capital and operating costs
        process and infrastructure engineering and cost estimation);
        (ii) Snowden (property description and location, accessibility,
        history, geological setting, deposit types, mineralization,
        exploration, drilling, sampling method and sample preparation,
        analyses and security, data verification); (iii) George Even, of SRK
        Consulting, Santiago, Chile (geotechnical assessment); and
        (iv) Adam Johnston of Transmin, Lima, Peru (mineral processing and
        metallurgical testing); and

    (b) for the portion of the mineral resource estimate that is based on the
        technical report dated May 9 2007 filed at May 10,
        2007, entitled "Constancia Project Technical Report", by Dr Warwick
        Board of Snowden Mining Industry Consultants Inc., Vancouver, Canada;
        R. Baxter President and COO of Norsemont Mining; and Adam Johnston of
        Transmin, Lima, Peru.

    Snowden is the independent QP, as defined under NI 43-101, responsible
for the quality control and verification of the drill hole data used by
Snowden in the resource estimates. The estimates, projections and conclusions
summarised in this release are subject to important qualifications,
assumptions and exclusions, all of which will be set out in a Technical
Report, which will be filed at within the prescribed 45-day
period. To fully understand the summary information contained in this release,
the full Technical Report should be read in its entirety when posted on SEDAR.
    All $ amounts are in 2007 US Dollars. IRR & NPV calculations are
calculated on a real after tax basis for 100% ownership interest (and
therefore before Canadian taxes, if any) assuming all-equity financing.


    Robert W. Baxter
    Norsemont Mining Inc.

    Cautionary Notices:

    This news release contains certain forward-looking statements that
involve risks and uncertainties, such as statements of Norsemont's plans,
objectives, strategies, expectations and intentions. The words "may", "would",
"could", "will", "intend", "plan", "anticipate", "believe", "estimate",
"expect" and similar expressions, as they relate to Norsemont, or its
management, are intended to identify such forward-looking statements. Many
factors could cause Norsemont's actual results, performance or achievements to
be materially different from any future results, performance or achievements
that may be expressed or implied by such forward-looking statements. The
forward-looking statements included in this news release represent Norsemont's
views as of the date of this news release. While Norsemont anticipates that
subsequent events and developments may cause its views to change, it
specifically disclaims any obligation to update these forward-looking
statements. These forward-looking statements should not be relied upon as
representing its views as of any date subsequent to the date of this news
release. All subsequent written and oral forward-looking statements
attributable to Norsemont or persons acting on its behalf are expressly
qualified in their entirety by this notice.

For further information:

For further information: Patrick Evans, Norsemont Mining, Tel: (416)
670-5114, Email:;

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