Mawson West Announces Positive Feasibility Study for Dikulushi Cutback Project
MAWSON WEST ANNOUNCES POSITIVE FEASIBILITY STUDY FOR DIKULUSHI CUTBACK PROJECT
Perth, Australia and Toronto, Ontario – August 29, 2011 – Mawson West Ltd. (TSX:MWE) ("Mawson" or the "Company") is pleased to announce positive feasibility study results supporting the development of a pit cut-back at its Dikulushi copper-silver project (the "Dikulushi Project") in the Democratic Republic of the Congo ("DRC"). The feasibility study was reviewed by Optiro Pty Ltd. ("Optiro") with contribution from Sedgman Ltd. ("Sedgman"). Unless otherwise indicated, all figures are in US dollars.
Highlights of the Feasibility Study
- Proven and Probable Mineral Reserves of 539 kt at 6.1% Copper (Cu) and 182g/t silver (Ag), at $3.50/lb Cu and $30/oz Ag.
- Existing processing capacity of 500 ktpa. All feed is sulphide ore with budgeted Cu recoveries of 90% Cu and Ag (based on plant actuals for same material).
- Expected concentrate grade of >50% Cu and >1500g/t Ag (based on actual plant recoveries from same material).
- Anticipated 12 month pre-strip costing $61 million, fully funded from Mawson’s existing cash reserves, and paid back in less than 12 months.
- Anticipated operating costs of $1.46/lb Cu ($0.10/lb Cu exclusive of duties and taxes, depreciation and amortization, and net of silver credit).
- At $3.50/lb Cu, and 10% discount rate the net present value ("NPV") is $116 million (90% or $104 million apportioned to Mawson) with an internal rate of return ("IRR") of 128%.
- Upside potential as current reserves do not include Dikulushi underground, Kazumbula or Boomgate deposits and Mawson is in the process of drilling additional exploration prospects within a 50km radius of Dikulushi.
For further information please refer to the attached Mawson West Statement.