VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/12/13 -- Euromax Resources Ltd. 12 March 2013 ("Euromax" or the "Company") (TSX VENTURE: EOX) (OTCQX: EOXFF) is issuing the following news release to further clarify its disclosure regarding the Preliminary Economic Assessment of the Ilovitza Gold Project in Macedonia (the "Original Report") dated 5th December 2012, as a result of the previously announced technical review by the British Columbia Securities Commission.
An amended Report will be filed shortly to correct minor items of non-compliance in the Original Report. The amended Report will continue to disclose results of a Preliminary Economic Assessment ("PEA") based on analysis of an 8 million ton per annum ("Mtpa") base-case, as restated below.
The Company is in the process of carrying out a Pre-Feasibility Study analysis of 12 Mtpa and larger production scenarios, based on indications from sensitivity analysis that increased throughput is likely to deliver improved economic parameters compared to the base-case 8 Mtpa PEA. The Company will disclose any material changes to its PEA results when received, and file an updated technical report to support the new Pre-Feasibility Study at that time.
Preliminary Economic Assessment Base Case Disclosure
The Company would also like to retract its previous disclosure of the Report which emphasised the 12 Mtpa throughput sensitivity analysis results rather than the 8 Mtpa throughput which is the Report's actual base case. This emphasis implied that the results of the 12 Mtpa throughput sensitivity represented the base case of the Ilovitza Preliminary Economic Assessment rather than being a throughput sensitivity. Investors should therefore disregard this previous disclosure of the Report.
For the avoidance of doubt, the results of the Ilovitza Preliminary Economic Assessment on the 8 Mtpa base case are as follows:
---------------------------------------------------------------------------- Pre-Tax Initial NPV @ 5% Capital Payback Mine LifeBase Case (US$M) IRR (%) (US$M) (Years) (Years)----------------------------------------------------------------------------8 Mtpa base case 252 10.8 405.6 7.6 19----------------------------------------------------------------------------
The results of the throughput sensitivity analysis, adjusted from the 8 Mtpa base case, are as follows:
---------------------------------------------------------------------------- Pre-Tax InitialThroughput NPV @ 5% Capital Payback Mine Life Sensitivity Analysis (US$M) IRR (%) (US$M) (Years) (Years)----------------------------------------------------------------------------12 Mtpa 352 13.7 476.0 6.2 1316 Mtpa 378 14.9 552.2 5.2 10----------------------------------------------------------------------------
