Aus der Watch:
Sandspring Announces Significant Increases in Life of Mine Grade and Cash Flow; Reduces Initial Capex for Toroparu Project
Increase in Measured and Indicated Resource to 6 million ounces gold. Updated PEA projects average fresh rock head grade of 1.2g/t gold and 0.18% copper for first five years of production. Expected five-year cash flow of US$750 million from US$482 million initial investment.
TORONTO, ONTARIO--(Marketwire - Jan. 30, 2012) - Sandspring Resources Ltd. (TSX VENTURE:SSP) ("Sandspring" or the "Company") is pleased to announce it has completed an updated NI 43-101 mineral resource estimate (the "Updated Resource Estimate") and an updated NI 43-101 Preliminary Economic Assessment (the "Updated PEA") for its 100% owned Toroparu Gold Property ("Toroparu") in Guyana. The Updated PEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the results of the Updated PEA will be realized. All currency amounts in this press release are denominated in United States Dollars ($) unless otherwise noted.
Highlights include:
- Mining of 1.0 million ounces gold at an average grade of 1.2 g/t and 101 million pounds copper at an average grade of 0.18% from the fresh rock mining operation over the first five years of operation.
- $750 million cumulative cash flow during first five years of production at December 31, 2011 three-year trailing average gold price of $1,255/oz.
- Pre-production capital costs of $482 million through development of more capital efficient operation for the first five years of mine life.
- Average cash costs including royalties of $450/oz. gold (net of copper credits) in first five years of operation and $600/oz. gold (net of copper credits) over the 14-year mine life.
- Mining of 4.0 million ounces gold from fresh and saprolite mineralization at an average grade of 1.0 g/t Au over a 14-year mine life at 4.1: 1 strip ratio, and 5.0 million ounces gold over 22-year life of project.
- Definitive Mineral Agreement signed with government of Guyana on November 9, 2011, the terms of which have been incorporated into the Updated PEA.
- Environmental authorization reviewed by Guyana Environmental Protection Agency with no fatal flaws found; and final approval is pending.
- Open pit operations anticipated to commence in 2015.
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Quote for Sandspring Resources Ltd. (SSP:CA)
$ 1,20 RT -0,07 (-5.51%) Volume: 1,64 m 15:06 EST 01.02.2012