- Published: 15 September 2008
- Written by Editor
Positive Feasibility Study Received for Shituru Copper Project
INTERNATIONAL BARYTEX RESOURCES LTD. ("the Company") (TSX-V: IBX) on behalf of its subsidiary, East China Capital Holdings Ltd., has delivered a Feasibility Study on the Shituru Copper Project to La Generale des Carrieres et des Mines (Gecamines), its partner in the project, in accordance with the requirements of its joint venture agreement (Mining Contract). The Feasibility Study proposes developing an open pit, ore processing and electrowinning facility with an annual production capacity of 38,000 tonnes of LME grade cathode copper. The lead consultant for the Feasibility Study was Bateman Minerals and Metals with the Mineral Resource and Mineral Reserve estimates prepared by SRK Consulting; both companies are Johannesburg based.
The project scope is largely unchanged from the Preliminary Assessment disclosed in January 2008 with the exception that the annual ore processing rate has been reduced to 900,000 tonnes per year. The decision to design on a lower throughput was based on the Feasibility Study production schedule having higher grades thereby allowing copper production to be maintained while processing ore at slower rates. A Summary of the Feasibility Study results is provided below: On behalf of the Board of Directors INTERNATIONAL BARYTEX RESOURCES LTD. "Leo King" ----------------------- Leo King President and Director Some statements in this news release contain forward-looking information. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release SOURCE: INTERNATIONAL BARYTEX RESOURCES LTD. International Barytex Resources Ltd.: Leo King, President or Alf Hills, CEO, (604) 688-9368, Fax: (604) 688-9336; Renmark Financial Communications Inc.: Jen Power: This email address is being protected from spambots. You need JavaScript enabled to view it.; Dan Symons: This email address is being protected from spambots. You need JavaScript enabled to view it.; Montreal: (514) 939-3989, Fax: (514) 939-3717; Toronto: (416) 644-2020, Fax: (416) 644-2021
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Mineral Resource (1),(2),(3)
At a 1.0% Copper Cut-off Grade
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Resource
Category Low Carbonate Hi Carbonate Talc Total
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Tonnes %TCu Tonnes %TCu Tonnes %TCu Tonnes %TCu
(Mt) (Mt) (Mt) (Mt)
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Measured 2.11 5.15 0.55 3.08 0.97 4.87 3.63 4.76
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Indicated 2.21 4.77 1.26 2.54 0.45 4.47 3.92 4.02
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TOTAL
Measured +
Indicated 4.32 4.96 1.81 2.70 1.42 4.75 7.55 4.38
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Inferred 0.22 2.51 0.01 3.38 - - 0.23 2.55
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1. Includes the Mineral Reserve. Mineral Resources that are not Mineral
Reserves do not have demonstrated economic viability
2. As of Aug 31,2008
3. See footnote at the end of this news relase
The Mineral Resource was estimated by SRK Consulting of Johannesburg using
3-D computer modeling and geostatistical estimation techniques.
Mineral Reserve (4)
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Low Carbonate / Talc High Carbonate Total
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Reserve Tonnes (Mt) Grade Tonnes Grade Tonnes Grade
Category (%Cu) (Mt) (%Cu) (Mt) (%Cu)
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Proven 3.03 4.92 0.54 2.95 3.57 4.62
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Probable 2.60 4.50 0.92 2.50 3.52 3.98
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Total 5.63 4.73 1.47 2.67 7.10 4.30
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CoG HiCa: 1.06% CoG LoCa & Talc: 0.66%
Dilution: 5% Mining Recovery: 98%
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4. As of August 31, 2008
The Mineral Reserve was determined by SRK Consulting utilizing
computerized open pit optimization techniques with estimated operating costs,
results from a geo-technical drilling program, and metallurgical test work
carried out over the last two years being inputs to the work.
Project Summary
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Tonnes Processed 7.24 Mt
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Strip Ratio 4.9 : 1
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Average Grade 4.3 %Cu
Life-of-Mine
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Metallurgical Recovery 86 %
Life-of-Mine
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Copper Recovered 265.5 Kt
Life-of-Mine Total
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Average Annual Production 34,000 t
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Cash Cost 0.66 USD/lb
Life-of-Mine(5)
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Marketing Costs 0.19 USD/lb
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Initial Capital 338 MUSD
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Total Capital - Life-of-Mine 400 MUSD
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Start of Production Q1-2011
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Mine Life 7.8 years
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5. excludes Royalties
Summary Economics - After-Tax, After-Royalties, 100% Equity, Project
Level
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Copper Price - USD/lb
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2.00 2.50 3.00 3.50 Forward
Curve
then 2.00
USD/lb(6)
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Discount Rate % Net Present Value - MUSD
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0 190 387 584 781 371
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5 89 239 389 538 242
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10 21 138 254 370 152
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15 (25) 68 159 165 87
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Payback from start of
production 4.3 2.7 2.4 2.0 2.2
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IRR % 12 22 31 39 26
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6. Forward Curve Futures prices for LME grade spot price as of August 25,
2008, resulting in USD/lb Copper prices of 3.20 - 2011, 3.10 - 2012,
3.00 - 2013, 2.00 thereafter
The project assumes initial construction of a Whole-Ore-Leach ("WOL")
process plant and a Solvent Extraction - Electrowinning ("SX-EW") refinery to
produce LME grade cathode copper. The Feasibility Study estimates 80% of the
ore processed is amenable to Whole-Ore-Leaching. This ore type occurs mainly
in the upper parts of the deposit. It has better grade, better metallurgical
recovery and lower operating costs than the remainder of the deposit. This
results in lower production costs and higher copper production in the early
years of the operation compared to the Life-of-Mine average.
Using a strategy similar to the January 2008 Preliminary Assessment, lower
grade, higher operating cost, high carbonate ore is stockpiled until Year 5 of
operation. A flotation plant is to be constructed to process this ore in Year
5. High carbonate ore would then represent 40% of the ore processed until the
end-of-mine life. The flotation plant would produce an oxide copper
concentrate which would then be fed into the leaching circuit and SX-EW
refinery to produce cathode copper. The flotation process allows high acid
consuming (high carbonate) material to be discarded ahead of the acid leaching
process and substantially reduces the processing costs for this ore type.
The initial capital cost of USD338million for the project compares to
USD228million estimated in the Preliminary Assessment. This increase reflects
a general increase in material and supply costs as well as labour costs
currently being experienced in the DRC.
Leo King, President says, ' Delivery of the Shituru Feasibility Study to
our partner Gecamines is a significant milestone for the Shituru project. As
noted in earlier news releases over the course of completing the Feasibility
Study a number of areas that would benefit from further optimization have been
identified. We have started work on some of these areas and intend to pursue
others following our review of the Feasibility Study. We look forward to
reporting on this optimization work as results become available."
Qualified Persons
The Mineral Resource estimate was prepared by SRK of Johannesburg with Mr.
Victor Simposya acting as the Qualified Person under NI 43-101 for the
estimate and has reviewed this news release.
The Mineral Reserve estimate was prepared by SRK of Johannesburg with
Mr HG Waldeck acting as the Qualified Person under NI 43-101 for the estimate
and has reviewed this news release.
Bruno Barde, P.Geo, Exploration Manager for the Company, supervised the
exploration programme, is a Qualified Person as defined under National
Instrument 43-101, and has reviewed this news release.
Maurice Tagami, P. Eng, Mineral Processing Consultant, supervised the
Metallurgical Testing Program and is a Qualified Person under National
Instrument 43-101, and has reviewed this news release.
3. The project has been described previously in Sept 2007, and March 2008
in Technical Reports filed on SEDAR titled 'MINERAL RESOURCE ESTIMATES
FOR SHITURU COPPER DEPOSIT, DEMOCRATIC REPUBLIC OF CONGO' and
'PRELIMINARY ECONOMIC ASSESSMENT OF THE SHITURU COPPER DEPOSIT,
DEMOCRATIC REPUBLIC OF CONGO'. Data verification for this Mineral
Resource estimate follows the methodology described in those reports.
A Technical Report on this Mineral Reserve estimate will be filed
within 45 days of this disclosure
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