re: Ann: Pilbara Cu-Zn Project DFS Delivers P... Venturex...

re: Ann: Pilbara Cu-Zn Project DFS Delivers P... Venturex Resources’ DFS serves up robust economics for Pilbara Copper-Zinc Project

Tuesday, December 18, 2012 by Bevis Yeo

Venturex Resources (ASX: VXR) has completed a Definitive Feasibility Study confirming the robust economics of its Pilbara Copper-Zinc Project.

This has found that the project could produce 16,500 tonnes of copper, 30,000 tonnes of silver and 200,000 ounces of silver per annum throughout the mine life of at least 8.5 years - based on the increased Ore Reserve of 8.37 million tonnes at 1.8% copper, 4% zinc and 21.5 grams per tonne silver.

Pre-production capital costs are estimated at about A$279 million while forecast earnings before interest, tax, depreciation and amortisation is A$548 million.

Earnings before interest and tax has also been estimated at about A$234 million.

Venturex said the results confirm its decision to locate the project at Sulphur Springs, with 85% of the Ore Reserve drawn from the deposit there.

The DFS provides for all operations to be totally focused at the Sulphur Springs deposit for the first 6.5 years of the project before transitioning to a blended ore supply from the Whim Creek area in the later stages of the project.

Further upside is likely as the DFS incorporates only three of the six known mineral resources currently controlled by the company in the Pilbara region.

The proximity of the recently acquired Kangaroo Caves resource provides an excellent brownfields exploration target and potential future ore supply for the processing hub at Sulphur Springs.

Preliminary modelling indicates that the additional resources could produce a potential project life in excess of 11 years at the currently planned throughput rate.

Venturex has commenced work on the project approvals and the financing strategy for the Pilbara Copper-Zinc Project.

It is anticipated that the required Western Australia Government approval documentation will be completed and submitted in late February 2013, with Government project approvals are expected to be completed in mid-late 2013.