Ann: Definitive Feasibility Study Completed -Tuca, page-3

re: Ann: Definitive Feasibility Study Complet... Beadell puts $99m price tag on Tucano
The West Australian May 10, 2011

Aspiring gold producer Beadell Resources has put a $99 million price tag on its planned Tucano gold project in Brazil and says it is targeting first production by the beginning of next year.

Releasing the results of a definitive feasibility study on the project, the company said it was finalising an engineering, procurement and construction management contract.

Beadell said it was also in discussions with various banks concerning funding options for the project.

The study envisages a project with a minelife of 7.6 years with average annual production of 150,000 ounces at cash costs of $US618 an ounce ($US557/oz in the early years).

Estimated revenue is $US1.58 billion with a payback period of 11 months, based on a gold price of $US1400 an ounce.

Beadell's managing director Peter Bowler said the company was positioned for outstanding growth.

He said six rigs were onsite continuously expanding the company's reserve and resource numbers.

The company was also in advanced discussions with a third party to compensate for mining iron ore from its gold pits, which would result in a significant improvement in project economics, Mr Bowler said.
Beadell shares were up three cents, or 3.9 per cent, to 80 cents at 8.45am.