Feasibility Study on track for completion in April 2009
Share Issued and Outstanding: 53,829,578
TORONTO and LIMA, Peru, Oct. 23 /CNW/ - Norsemont Mining Inc. ("the
Company") (TSX: NOM, BVL: NOM) today provided an update on the Definitive
Feasibility Study for the Constancia copper-molybdenum-silver project in
southern Peru. The feasibility study is currently on track for completion in
Commenting, Norsemont CEO Patrick Evans said: "The Constancia Project is
widely regarded as the leading independent copper-molybdenum-silver project in
Peru. Despite the recent weakness in the copper market, Constancia remains an
exceptionally robust project and I'm very pleased with the excellent progress
of the feasibility study. From the commencement of the feasibility study,
Norsemont has used a long-term copper price assumption of $1.80 per pound. A
recently completed scoping study (discussed below) indicates the project has a
net present value of $530 million and an internal rate of return of
25.3 percent under this copper price assumption."
Feasibility Study activities in the areas of process plant design,
engineering drawings, power and roads have been carried out to meet the
schedule for completion in April 2009. In addition, progress with the
metallurgical drilling for the molybdenum optimisation and completion of the
infill drilling has been exceptional due to excellent drilling productivity.
Drilling is scheduled to be completed by the end of November, 2008.
Highlights from the Definitive Feasibility Study are:
- Major infrastructure locations (plant, mine waste dumps and tailing
storage facility) have been identified and sterilised;
- Information on HAZCHEM classifications, dangerous goods codes and
storage has been reviewed;
- Power demand of 102MW will be supplied via a 220kv high-tension line
from the national power grid. Design is scheduled for completion by
the end of November 2008;
- Access road study and engineering design from the town of Espinar to
the project site has been completed;
- Phase I waste characterisation report has been completed;
- Preliminary water balance study has been completed;
- Seismic risk evaluation is in progress and nearing completion;
- 2,300 metres of geotechnical drilling has been completed for open-pit
- The hydro-geological drill program is due for completion by the end
of November 2008.
Norsemont has maintained its strategy to fast track the project and is
pleased with the progress to date. In addition to the excellent progress on
the engineering and infrastructure design, the company is pleased to report
that the Environmental and Social Impact Assessment has been initiated and the
formal presentations have been completed and well received by Peru's Ministry
of Mines and Energy.
About Norsemont Mining
Norsemont Mining is a Canadian mineral exploration and development
company focused on the 100 percent-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 0.5% Cu (2.85 Billion lbs Cu) and an inferred
resource of 156.5M tonnes at 0.33% Cu (1.14 Billion lbs Cu). A recently
completed scoping study anticipates a project producing in excess of
90,000 tonnes of copper annually. The study indicates the project has a net
present value of $530 million and an internal rate of return of 25.3 percent.
The following long-term commodity price assumptions were used in the study:
copper $1.80 per pound, molybdenum $12 per pound and silver $11 per ounce. The
full study, dated December 11, 2007, and titled "Preliminary Assessment of the
Constancia Project, Department of Cusco, Peru" is available for viewing on
SEDAR. Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
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, Norsemont Mining, Phone: (416)
670-5114, E-Mail: firstname.lastname@example.org, Web Site: www.norsemont.com