TARGETING 2003 FEASIBILITY STUDY AND MOVE TO MINING DEVELOPMENT
Pilbara Mines Limited (ASX: PIL) have received a Preliminary Evaluation Report from Snowden Mining Industry Consultants for the Jaguar deposit (1.4 million tonnes @ 3.7% Cu, 13.2% Zn, 140 g/t Ag), which shows a robust mining project and recommends continued feasibility study assessment leading to bankable status.
The analysis shows the Jaguar resource supports an underground mine of at least 6 years mine life, generating revenues of A$346 million with cash flow before capex. of A$76 million.
The analysis is based on current spot metal prices (with zinc currently at historical low values), assumed metal recoveries based on historical data, which are believed to be conservative, and industry standard capital and operating cost estimates.
Using zinc and copper prices averaged over the past 2 years the cash flow before capex. increases to A$106 million.
This analysis does not include the surface resources of tailings and sulphide stockpiles at the Teutonic Bore mine (4km to the north), which contain 12,300 tonnes of Copper, 31,400 tonnes of zinc and 3.2 million ounces of silver, which will add further revenue to the project.
Pilbara have commenced further diamond drilling at Jaguar to extend the resource base with infill and extension drilling and to provide geotechnical and metallurgical samples for feasibility study analysis. Pilbara will be announcing shortly, a project management team to oversea the feasibility study.
ASX Code: PIL Options Code: PILO
For further information, please contact: John Davis MANAGING DIRECTOR Pilbara Mines NL Telephone: (08) 9322-9999 Mobile: (0417) 916-849 Or visit Pilbaras web site: www.pilbaramines.com.au
