TORONTO, ONTARIO -- (Marketwired) -- 06/19/13 -- Seafield Resources Ltd. ("Seafield" or "the Company") (TSX VENTURE: SFF) is pleased to announce the results of an independent updated Preliminary Economic Assessment ("PEA") for the higher grade zone of its 100%-owned Miraflores Deposit (the "Project"), located in the Quinchia District of the Department of Risaralda, Colombia. The PEA was completed by SRK Consulting ("SRK") of Denver, Colorado.
-- Open pit mine life of 12 years, underground mine life of 12 years and process production life of 15 years;-- The open pit is within the confines of the Miraflores lease limits and represents a small footprint, low cost, high value option that is capable of being developed by a junior mining company;-- Average annual gold production of 42,442 oz ("Au") in the first 11 years produced from open pit and underground mining plus 62,588 produced ounces from start of processing of low grade stockpile after year 11 until end of processing;-- Life of mine ("LOM") gold production of 529,453 oz and LOM silver production of 311,597 oz;-- Average mill throughput rate of 1,750 tonnes per day ("tpd");-- Measured and Indicated Resource of 72,624,000 tonnes at a cut-off grade of 0.27 g/t Au (1,816,000 oz Au grading 0.78 g/t Au and 3,555,000 oz Ag grading 1.5 g/t Ag - see press release date April 2, 2013): -- Mine plan and economic analysis of this PEA is focused on a portion of the resource base with 9.07 million tonnes ("Mt"), of higher grade mineralized material; -- 3.01 Mt at 1.48 g/t Au and 2.08 g/t Ag (open pit mining); -- 6.06 Mt at 2.32 g/t Au and 2.17 g/t Ag (underground mining);-- Open pit strip ratio of 5.8:1 (waste:mined resource)-all waste is required for tailings dam construction;-- Average cash operating cost (net of refining, transportation, royalties, and silver credit) of US$ 724.77/oz during the first 11 years of production when 88% of the gold is produced;-- Initial capital expenditures of US$ 83.6 M and sustaining capital expenditure of US$ 70.7 M;-- Pre-tax IRR of 23% and NPV (5%) of US$141.3 M and post-tax IRR of 20% and NPV (5%) of US$ 98.0 (based on a gold price of US$ 1,500/oz and a silver price of US$30/oz).-- Strong leverage to gold price with pre-tax IRR of 19% and NPV (5%) of US$ 107 M at US$ 1,400/oz and pre-tax IRR of 27% and NPV (5%) of US$ 175 M at US$ 1,600/oz
"We are very pleased to present the updated PEA which includes substantial support and content from technical disciplines that are extremely advanced," commented Cesar Lopez, Seafield's President and CEO. "The updated PEA presents a production scenario with attractive economics achieved through manageable capital expenditures and below-average industry cash costs. We are on track to complete the Feasibility Study for Miraflores by year end after completing this critical milestone earlier than originally committed and clearly advancing the Company's position as an emerging gold producer in Colombia."
-- The Company is advancing the critical path items in order to deliver a Feasibility Study by the end of Q4, 2013.-- The Environmental Impact Assessment is scheduled for completion and delivery to the authorities at the end of Q4 2013, as is the mining permit.