Preliminary Economic Assessment filed on SEDAR for Colt's 100% Boa
Fé and Montemor Projects, Southern Portugal
Trading
Symbols:
|
GTP - (TSX-V)
P01 - (FRANKFURT)
COLTF - (OTCQX)
|
MONTREAL, May 7, 2013 /PRNewswire/ - Colt Resources Inc.
("Colt" or the
"Company") (TSXV: GTP) (FRA: P01) (OTCQX: COLTF) is pleased to
announce
the filing on SEDAR today of a positive Preliminary Economic
Assessment
("PEA") prepared by SRK Consulting (UK) Ltd ("SRK") for the Boa
Fe/Montemor gold projects, located in Portugal. The full report will
also be available on Colt's website. The PEA covers the
Chaminé, Casas
Novas, Banhos, Bracos and Ligeiro gold deposits located within
the
Company's 100% owned (47km2) Boa Fé Experimental Mining
License ("EML") and the Monfurado gold
deposit located within the Company's 100% owned (728km2)
Montemor exploration license that completely surrounds the Boa Fé
EML.
Nikolas Perrault, CEO and
President of Colt stated; "We are very pleased
with the results of this first PEA prepared by SRK that reflects
the
work performed on our 100% owned Boa Fé and Montemor gold projects
that
we acquired in November 2011.
Our strategy of focusing on areas that
were drill tested primarily during the 1990's has resulted in the
rapid
development of these assets. Our aggressive drilling campaign
that
commenced shortly after being awarded the EML has significantly
increased our confidence in the potential of these assets while
our
regional exploration work has indicated the potential to expand
upon
the previously announced NI43-101 compliant mineral resources
(March 4,
2013). Our decision to prepare the PEA on what we
believe to be a
portion of a potentially larger deposit is based on our resolve to
move
the project to production and to ultimately aim towards financing
the
exploration of this very prospective area from revenue. We
therefore
remain focused on completing our feasibility study by year end
which
will support a production decision shortly thereafter. In
parallel, as
part of our ongoing Environmental Impact Assessment (EIA), a
scheduled
public review took place during April paving the way for final
approval. The EIA will be used as a blueprint designed to mitigate
the
impact of mining while generating value in an economically
depressed
region of Portugal."
Preliminary Economic Assessment Summary
A Preliminary Economic Assessment ("PEA") was prepared by SRK
Consulting
(UK) Limited for the Boa Fé - Montemor gold project in Portugal owned
by Colt Resources Inc. The PEA relied on Indicated and Inferred
classified resources as announced by Colt on March 4, 2013. The PEA
evaluated four processing options for the open pit mining of
six
separate deposits at a total annual ore production rate of
720 ktpa.
The four options are reported in Table 1.
Table 1: Boa Fé/Montemor Processing Options
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|
Scenarios
|
Description
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Option A
|
Conventional Off-Site
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Option B
|
Conventional On-Site
|
Option C
|
Drinkard Heap Leach
|
Option D
|
Drinkard Halogen
|
The main conclusions from the PEA are shown in Table 2. All values
are
in USD and the study assumes a USD 1.30/EUR exchange rate. A flat gold
price of USD 1,425/oz was used
in the economic assessment. Capital and
operating costs were derived from a combination of first principles
and
experience based on similar projects.
The conclusions and recommendations of the PEA are that the Project
may
be economically viable and that further studies and field work for
this
project are justified.
SRK notes that the economic assessment is preliminary in nature and
the
production schedules are inclusive of Inferred classified
Mineral
Resources that are considered too geologically speculative to
have
economic considerations applied to them that would enable them to
be
classified as Mineral Reserves. There is no certainty that the
preliminary economic assessment will be realized.
Table 2: Summary of Preliminary Economic Assessment
results for Boa
Fé/Montemor deposits
Alentejo Region, Portugal: SRK Consulting (UK)
Ltd.
|
|
|
|
|
|
|
Units
|
Option A
|
Option B
|
Option C
|
Option D
|
Processing Method
|
|
Conventional
off-site
|
Conventional
on-site
|
Drinkard
Heap Leach
|
Drinkard
Halogen
|
|
Recovery
|
(%)
|
85.5
|
85.5
|
73
|
95
|
Production
|
|
|
|
|
|
|
Rock Mined
|
(kt)
|
18,735
|
20,923
|
20,028
|
24,425
|
|
Ore Processed
|
(kt)
|
3,501
|
4,437
|
4,624
|
5,045
|
|
(g/t Au)
|
2.7
|
2.4
|
2.3
|
2.2
|
|
Recovered Metal
|
(koz Au)
|
262
|
291
|
249
|
339
|
|
Mine Life
|
(years)
|
5.0
|
6.3
|
6.5
|
7.1
|
Financial
|
|
|
|
|
|
|
Revenue
|
(USDm)
|
373
|
415
|
355
|
482
|
|
Operating Expenditure
|
(USDm)
|
(175)
|
(180)
|
(156)
|
(206)
|
|
Royalty
|
(USDm)
|
(15)
|
(17)
|
(14)
|
(19)
|
|
Operating Profit
|
(USDm)
|
184
|
219
|
185
|
257
|
|
Net Profit
|
(USDm)
|
164
|
193
|
159
|
220
|
|
Capital Expenditure
|
(USDm)
|
(119)
|
(123)
|
(92)
|
(124)
|
|
Cashflow
|
(USDm)
|
44
|
69
|
68
|
97
|
Post-Tax Reporting
|
|
|
|
|
|
|
NPV @ 5%
|
(USDm)
|
24.4
|
42.4
|
45.5
|
64.3
|
|
IRR
|
(%)
|
15.6
|
21.4
|
32.7
|
30.2
|
Cash Cost
|
|
|
|
|
|
|
Cash Cost
|
(USD/tore)
|
54.11
|
44.22
|
36.82
|
44.68
|
|
(USD/oz)
|
724
|
674
|
683
|
666
|
Metal Price Sensitivity Analysis
The impact of a range of gold prices on the NPV5% for
the project has been studied in the PEA and the results are
reported in Table 3.
Table 3: Gold Price Sensitivity Analysis Results
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|
|
|
|
|
|
|
|
|
|
Units
|
|
|
|
|
|
|
|
|
Metal Price
|
USD/oz
|
1,100
|
1,200
|
1,300
|
1,425
|
1,500
|
1,600
|
1,700
|
1,800
|
NPV5%
|
|
|
|
|
|
|
|
|
|
|
Option A
|
USDm
|
(25)
|
(9)
|
6
|
25
|
37
|
52
|
67
|
82
|
|
Option B
|
USDm
|
(10)
|
7
|
24
|
44
|
56
|
72
|
88
|
105
|
|
Option C
|
USDm
|
1
|
15
|
30
|
47
|
57
|
71
|
85
|
99
|
|
Option D
|
USDm
|
4
|
24
|
43
|
66
|
81
|
99
|
118
|
137
|
Colt is aware that several areas of improvement may be made to
capital
and operating costs which will be addressed during the
Feasibility
Study.
Project Timeline and Optimization Efforts
The completion of this positive PEA is an important milestone in
the
continued development of Boa Fé/Montemor.
Colt's projected timeline to advance the project includes the
following
milestones:
Q4 2013 - Resource Update
Q4 2013 - Completion of Feasibility Study
Q4 2013 - Receipt of Full Mine Permit
Q1 2014 - Detailed engineering and procurement
Q2 2014 - Commence construction activities
Q1 2015 - Commence Production
Colt intends to address several areas during the Feasibility Study
so as
to improve results included in the PEA. These will
include:
Mineral Resources - Colt will focus on upgrading of Inferred
Resources
to Indicated Resources and the identification of additional
resources
in close proximity to the known deposits. Colt is also
confident that
the potential to increase resources through regional exploration
is
good. Exploration work will be directed toward identifying
additional
deposits that will benefit the future mining operation.
Processing - Colt will complete ongoing testwork so as to finalize
and
optimize process flowsheets leading to final plant design.
The several
approaches studied have provided several options that will be
further
evaluated and finalized.
Pit Slope - Colt will perform additional geotechnical
investigations
designed to optimize pit slope angles.
Environmental - Work will continue to address the need to minimize
the
impact of the future mining project.
Mining - Capital and operating costs will be addressed in detail
to
identify areas where improvements can be made so as to benefit
the
future economics of the project.
About Colt Resources Inc.
Colt Resources Inc. is a Canadian junior exploration and mining
company
engaged in acquiring, exploring, and developing mineral properties
with
an emphasis on gold and tungsten. It is currently focused on
advanced
stage exploration projects in Portugal, where it is the largest lease
holder of mineral concessions.
Jurgen Fuykschot MSc MBA MAusIMM (CP), Principal Consultant
(Mining
Engineering), SRK Consulting (UK) Limited, is the independent
qualified
person, as defined in NI 43?101, for the Boa Fé/Montemor
Preliminary
Economic Assessment. Mr Fuykschot has reviewed the
content of this
press release and consents to the information provided in the form
and
context in which it appears.
The Company's shares trade on the TSX?V, symbol: GTP; the
Frankfurt
Stock Exchange, symbol: P01; and, the OTCQX, symbol: COLTF.
FORWARD-LOOKING STATEMENTS: Certain of the information contained
in this
news release may contain "forward-looking information".
Forward-looking
information and statements may include, among others,
statements
regarding the future plans, costs, objectives or performance of
Colt
Resources Inc. (the "Company"), or the assumptions underlying any
of
the foregoing. In this news release, words such as "may",
"would",
"could", "will", "likely", "believe", "expect", "anticipate",
"intend",
"plan", "estimate" and similar words and the negative form thereof
are
used to identify forward-looking statements. Forward-looking
statements
should not be read as guarantees of future performance or results,
and
will not necessarily be accurate indications of whether, or the
times
at or by which, such future performance will be achieved.
Forward-looking statements and information are based on
information
available at the time and/or management's good-faith belief
with
respect to future events and are subject to known or unknown
risks,
uncertainties, assumptions and other unpredictable factors, many
of
which are beyond the Company's control. These risks, uncertainties
and
assumptions include, but are not limited to, those described
under
"Risk Factors" in the Company's annual information form available
on
SEDAR at www.sedar.com and could cause actual events or results to
differ materially from
those projected in any forward-looking statements. The Company does
not
intend, nor does the Company undertake any obligation, to update
or
revise any forward-looking information or statements contained in
this
news release to reflect subsequent information, events or
circumstances
or otherwise, except if required by applicable laws.
PEA: ADDITIONAL CAUTIONARY NOTE
This note regarding the preliminary economic assessment (PEA) is
in
addition to cautionary language already included within the
news
release as required under NI 43-101. The 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,
and
there is no certainty that the PEA based on these mineral
resources
will be realized. Mineral resources that are not mineral reserves
do
not have demonstrated economic viability.
Neither the TSX Venture Exchange nor its Regulation Services
Provider
(as that term is defined in the policies of the TSX Venture
Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
SOURCE COLT RESOURCES INC.
PDF available at:
http://stream1.newswire.ca/media/2013/05/07/20130507_C4347_DOC_EN_26462.pdf