Mawson West Announces Positive Feasibility Study for Kapulo Project
MAWSON WEST ANNOUNCES POSITIVE FEASIBILITY STUDY FOR KAPULO PROJECT
Perth, Australia and Toronto, Ontario – July 4, 2011 – Mawson West Ltd. (TSX:MWE) (“Mawson” or the “Company”) is pleased to announce positive feasibility study results supporting the development of an open cut mine at its Kapulo copper project (the “Kapulo Project”) in the Democratic Republic of the Congo (“DRC”). The feasibility study was compiled by Coffey Mining Pty Ltd. (“Coffey”) with the participation and contribution of Sedgman Ltd. (“Sedgman”). Unless otherwise indicated, all figures are in US dollars.
The company also wishes to announce that it has completed its internal feasibility study on exploiting the remaining known insitu resource at the Dikulushi copper-silver mine. Independent expert review of the study by Optiro of Perth, Australia is underway.
Highlights of the Feasibility Study
- Proven and Probable Mineral Reserves of 3.6 Mt at 3.6% Copper (Cu) and 8.3 g/t silver (Ag), at $2.50/lb Cu (Shaba open cut only).
- Average annual production from current reserves of 15.8 kt Cu and 78 koz Ag over a 7.5 year mine life.
- Processing capacity of 0.385 Mtpa of oxide material or 0.5 Mtpa of sulphide material. Approximately 8% of feed is oxide ore with Cu recoveries of 72% with the remaining 92% of ore being sulphide achieving Cu recoveries in the order of 93%.
- $69.5 million initial capital cost, with development full funded from Mawson's existing cash reserves.
- Anticipated operating costs of $1.97/lb Cu ($1.79/lb Cu exclusive of duties and taxes, depreciation and amortisation), excluding silver credit.
- At $7,975/t ($3.62/lb) Cu, net present value ("NPV") at a 10% discount of $157 million (90% of $141 million apportioned to Mawson) and internal rate of return ("IRR") of 61%
- Anticipated 17 month construction schedule starting in July 2011, with commissioning of the process plant scheduled for November 2012.
- Upside potential as current reserves do not include Shaba underground, Safari North or Safari South deposits and Mawson is in the process of drilling additional exploration prospects along the 60 km Kapulo fault.
For further information please refer to the attached Mawson West Statement.