TORONTO, Nov. 29, 2012 /CNW/ - Wallbridge Mining Company Limited (TSX: WM, FWB: WC7) ("Wallbridge") today announced the filing on SEDAR the prefeasibility study report on the Broken Hammer Project located in Sudbury, Ontario. The prefeasibility was prepared by Genivar Inc. ("GENIVAR") entitled "Prefeasibility Report on the Broken Hammer Project, Sudbury, Ontario, Canada". This filing follows press release of October 16, 2012, which referenced the summary highlights of the prefeasibility study. All dollar amounts are in Canadian currency.
Prefeasibility study highlights
- The prefeasibility study was prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") definition standards.
- The metal prices used are copper @ $3.50 per pound, nickel@ $9.00 per pound, platinum @ $1,600 per ounce, palladium @ $650 per ounce, gold @ $1,700 per ounce, and silver @ $35 per ounce.
- Estimated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $8.4 million or $42.60 per tonne of ore.
- Estimated total capital costs (CAPEX) for the project of $1.9M.
- Estimated pre-tax Net Present Value (NPV) of $6.03M using an 8% discount factor and $3.50USD per pound of copper and $1,600USD per ounce of platinum and CAD/USD of 1.00
- Estimated ore production rate of 750 tonnes of Cu-Ni-PGE ore per day similar to the 2011 bulk sample production rate.
- Estimated Mine life of 12 months.
- Estimated Operating Costs (OPEX) of $131.99 per tonne of ore.
Broken Hammer Project Description
The Broken Hammer project is planned to be an open pit operation used for the extraction of approximately 196,000 tonnes of in-pit Cu-Ni-PGE mineral resources utilizing the services of surface mining contractors. The ore is planned to be sampled for metal accounting through a sample tower on-site prior to being transported to an off-site facility for processing. The prefeasibility study assumes the production will commence in early to mid-2013 and will be completed within 12 months of mining operation at an average daily rate of approximately 750 tonnes of ore during the 12 months of operation.
As part of the prefeasibility study, Roscoe Postle Associates Inc. ("RPA") prepared an in-pit mineral reserve estimate based on a global mining recovery of 95% and 5% dilution (at zero grade). Table 1 below summarizes the in-pit reserve.
Table 1: Mineral Reserve Estimate
| BROKEN HAMMER MINERAL RESERVES |
| Category | Tonnes | Cu (%) | Ni (%) | Pt (g/t) | Pd (g/t) | Au (g/t) | Ag (g/t) |
| Probable | 196,600 | 0.92 | 0.10 | 1.92 | 1.82 | 0.64 | 6.02 |
| Waste Rock | 1,710,770 tonnes |
| Stripping Ratio | 8.7 |
Economic Analysis & Sensitivity
The 12-month project generates an EBITDA of $8.4M and a pre-tax Net Present Value (NPV) of $6.03 M discounted at 8%. The payback period would be 8.0 months. Below are the details of the economic analysis:
| |
| FINANCIAL ANALYSIS |
| | REVENUE | $C | $/Tonne milled |
| | Copper | $11,562,600 | | | | 58.81 |
| | Nickel | 1,932,500 | | | | 9.83 |
| | Palladium | 10,969,100 | | | | 55.79 |
| | Platinum | 5,214,300 | | | | 26.52 |
| | Gold | 4,454,300 | | | | 22.66 |
| | Silver | 500,200 | | | | 2.54 |
| | TOTAL REVENUE | $34,633,000 | | | | $176.15 |
| | | | | |
| COSTS: |
| | Mining | $9,791,000 | | | | $49.80 |
| | Crushing & Hauling | 3,933,000 | | | | 20.00 |
| | Milling, Smelting, Refining & other charges | 12,227,000 | | | | 62.19 |
| | TOTAL COSTS | $25,951,000 | | | | $131.99 |
| | | | | | | |
| | PROFIT BEFORE ROYALTY | $8,682,000 | | | | $44.16 |
| | Royalty @ 1.5% | 307,000 | | | | 1.56 |
| | EBITDA | $8,375,000 | | | | $42.60 |
The sensitivity analysis on the base case pricing scenario uses variations of +/- 15% from the base case in revenues for copper, platinum, and other factors that could have a significant effect on the project. The project is most sensitive to US/C$ exchange rate as well as project operating costs.
Cautionary Notes regarding the prefeasibility study
The Broken Hammer pre-feasibility study was prepared to broadly quantify the Broken Hammer deposit's capital and operating cost parameters, and to further the development of this footwall-style Cu-Ni-PGE project. It was not prepared for use as a valuation of the Broken Hammer deposit, nor should it be considered to be a final feasibility study. The information contained in the Broken Hammer pre-feasibility study reflects various technical and economic conditions at the time of writing and is based on the successful results of the 2011 bulk sample. These conditions can change significantly over relatively short periods of time. The achievability of life of mine plans, budgets and forecasts are inherently uncertain. There can be no assurance that the potential results contained in the Broken Hammer pre-feasibility study will be realized. Readers are cautioned that the assumptions used in the preparation of the Broken Hammer pre-feasibility study, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on them.
Qualified Persons
Qualified Person for the Broken Hammer prefeasibility study, the main subject of this disclosure, is Mr. Rod Doran, P. Eng. of GENIVAR. Qualified person for the Broken Hammer updated reserve estimate and detailed mine design is Mr. Jason Cox, P. Eng., of RPA. Mr. Cox is a Qualified Person under NI43-101 and is independent of Wallbridge.
In addition to the Qualified Persons responsible for the preparation of the above referenced technical report, Mr. Alar Soever, P. Geo., Executive Chairman for Wallbridge Mining, has acted as Qualified Person, as defined by NI43-101, concerning the exploration portion of this disclosure and Mr. Marz Kord, P. Eng., President & CEO for Wallbridge Mining, has acted as Qualified Person regarding the engineering and economic portions of this disclosure. Both Mr. Soever and Mr. Kord are employees of Wallbridge Mining, thus are not independent.
About Wallbridge Mining
Wallbridge Mining Company Limited (WM:TSX) is an established metals company working to build sustainable growth for investors through discovery and development of mineral resources.
Wallbridge specializes in nickel, copper, platinum, palladium and gold projects in mining friendly jurisdictions of North America, with a particular focus on Sudbury, Ontario. Wallbridge's position in Sudbury offers unique large-scale discovery upside in Canada's premier mining district.
Wallbridge has a record of generating high potential projects and financing exploration through joint ventures or spin-out companies. Wallbridge has 42 exploration to pre-feasibility stage mineral projects. These include 11 joint ventures with partners Impala Platinum Holdings Limited, Lonmin Plc, Xstrata Nickel and a number of junior mining companies.
Wallbridge also holds significant equity interests in spin-out companies Duluth Metals Limited (DM:TSX) and Miocene Metals Limited (MII:TSV).
This press release may contain forward-looking statements (including "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995) relating to, among other things, the operations of Wallbridge and the environment in which it operates. Generally, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Wallbridge has relied on a number of assumptions and estimates in making such forward-looking statements, including, without limitation, the costs associated with the development and operation of its properties. Such assumptions and estimates are made in light of the trends and conditions that are considered to be relevant and reasonable based on information available and the circumstances existing at this time. A number of risk factors may cause actual results, level of activity, performance or outcomes of such exploration and/or mine development to be materially different from those expressed or implied by such forward-looking statements including, without limitation, whether such discoveries will result in commercially viable quantities of such mineralized materials, the possibility of changes to project parameters as plans continue to be refined, the ability to execute planned exploration and future drilling programs, the need for additional funding to continue exploration and development efforts, changes in general economic, market and business conditions, and those other risks set forth in Wallbridge's most recent annual information form under the heading "Risk Factors" and in its other public filings. Forward-looking statements are not guarantees of future performance and such information is inherently subject to known and unknown risks, uncertainties and other factors that are difficult to predict and may be beyond the control of Wallbridge. Although Wallbridge has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. Consequently, undue reliance should not be placed on such forward-looking statements. In addition, all forward-looking statements in this press release are given as of the date hereof.
Wallbridge disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws. The forward-looking statements contained herein are expressly qualified by this disclaimer.
SOURCE Wallbridge Mining Company Limited
