Boseto Copper Project Bankable Feasibility Study
• The overall Bankable Feasibility Study ('BFS') is now scheduled for completion in the first quarter of 2010 to incorporate recent positive exploration results. Other BFS work, including ore processing, infrastructure and the environmental assessment, will be completed in mid 2009 in line with the original BFS schedule.
• Based on BFS work to date and changes in the external environment, updated financial evaluation of the Boseto project shows:
• operating costs are expected to be significantly lower than reported in the Pre Feasibility Study ('PFS') with the updated 10 year average cost of $1.06/lb vs $1.43/lb in the PFS, due to higher grades and lower site and transport costs more than offsetting reduced metallurgical recovery and higher treatment charges.
• capital costs should be reduced by approximately 25% based on current lower supplier quoted costs for capital equipment and engineering.
• overall project economics are improved, with the copper price at which the project provides a 10% discounted cash flow rate of return now being less than $1.50/lb (break even NPV).