EDMONTON, ALBERTA -- (Marketwire) -- 03/06/13 -- Firestone Ventures Inc. ("Firestone" or the "Corporation") (TSX VENTURE: FV)(FRANKFURT: F5V) is pleased to announce the results of the Preliminary Economic Assessment ("PEA") completed on its Torlon Hill Zinc-Lead-Silver Project located in Guatemala (the "Project") by ProMet Dadi Pty. ("ProMet") based in Johannesburg, South Africa. The PEA outlines an operation with a 617,000 tonne per year throughput, projecting an after-tax 97% internal rate of return ("IRR") and an after-tax US $45.4 Million net present value ("NPV") at a 5% discount rate.
Firestone's plan is to construct the mine and mill facility that will produce a zinc concentrate and a silver-rich lead concentrate that will be direct shipped to market. Firestone continues to advance the social, environmental and technical aspects of the Project that will allow for the completion of a Feasibility Study and advance the project to production.
ProMet Study Base Case Highlights
-- After-tax and after-royalty Net Present Value ("NPV") at a 5% discount rate of US$45.4 Million and an after-tax Internal Rate of Return ("IRR") of 97% that assumes expenditure and commissioning happen in the same year,-- Payback of 1.2 years after tax and after plant start-up,-- Initial capital cost ("Capex") of US$26 Million over a 12-month development period,-- An initial 5 year mine life from the mining and processing of three million tonnes at a processing rate of 617,000 tonnes per year from one open pit operation with a strip ratio estimate of 2.57:1,-- Life of Mine ("LOM") payable production of 106,392 tonnes of contained zinc metal, 42,979 tonnes of contained lead metal and 766,800 ounces of silver from the production of a zinc concentrate and a silver-rich lead concentrate,-- Estimated Operating Costs for the initial 5 year mine-life are $42.42/tonne,-- Commodity price assumptions for base case of $1.00/lb zinc, $1.00/lb lead and $30/ounce silver.The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the estimates of the PEA will be realized.
Firestone's President and CEO, Pamela Strand commented, "The operation outlined by this PEA for the Torlon Hill Project indicates the potential for a fast track to market approach for our zinc project. The projected NPV, net cash flows, and relatively low capital costs arise from Firestone's advantages, including a deposit near significant infrastructure (including the Pan American highway, multiple ports and future hydro power). Our results to date, coupled with this engineering study make a compelling case for expediting the development of the Torlon Hill Project."
Economic Sensitivities
The economics of the Project are most sensitive to metal prices, recovery and the grade of the potentially mineable mineralization. The results of the sensitivity analysis are illustrated below.
Note: To view the "NPV Sensitivity" graph, please click the following link: http://media3.marketwire.com/docs/fv0306.pdf.
Financial Sensitivities at Various Zinc Prices (5%discount rate)------------------------------------------------------ Price of Zinc After-tax NPV (US$/lb) US$ Millions After-tax IRR------------------------------------------------------ $1.05 $48.0 102%------------------------------------------------------ $1.00 $45.4 97%------------------------------------------------------ $0.95 $42.5 91%------------------------------------------------------ $0.90 $39.6 84%------------------------------------------------------
