VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/24/13 -- Tintina Resources Inc. ("Tintina" or the "Company") (TSX VENTURE: TAU)(OTCQX: TINTF) is pleased to announce the positive results of an updated Preliminary Economic Assessment (the "Updated PEA") for its 100% owned Black Butte Copper Project (the "Project") located in central Montana, USA. All currency amounts are in United States dollars (US$) unless stated otherwise. The pre-tax results include: an internal rate of return ("IRR") of 30.5%, a net present value ("NPV") of $218M at an 8% discount rate, and a payback of 3.6 years using an assumed life of mine copper price of $3.05. Once in operation, the Black Butte Copper Project would provide approximately 200 jobs per year during the 11 year mine life. All of the currently known resources and mine-related site facilities for the Black Butte property discussed in the Updated PEA are on private ranch lands (see Figures 1 and 2).
The Company commissioned the Updated PEA to supplant the Company's previously filed PEA dated August 30, 2012. The Updated PEA incorporates the results of recent diamond drilling on the Johnny Lee Deposit and a revised sequence of mining based on the updated resource estimate disclosed in the Company's press release dated November 13, 2012. The Updated PEA does not include the Lowry deposit.
Please note that the Updated PEA is preliminary in nature, that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and that there is no certainty that the Updated PEA will be realized. Please see the important disclosure under "Cautionary Note Regarding the Updated PEA" below.
-- Initial estimated startup capital of $217.8 million including a 22% contingency of $33.3 million. Estimated sustaining capital is $114.7 million over an 11 year mine life-- Base case using long-term copper price of $3.05 / pound (lb)(i) -- Pre-tax NPV of $218 million at an 8% discount rate with an IRR of 30.5% and 3.6 year payback -- Post-tax NPV of $110 million at an 8% discount rate with an IRR of 20.2% and 4.7 year payback(ii)-- Underground mining operation with 11-year mine life at a nominal processing rate of 3,300 tonnes (t) per day using a conventional flotation circuit producing a single copper concentrate-- Average annual payable metal production estimated at 62.06 million pounds of copper-- Life-of-mine payable metal production estimated at 682.62 million pounds of copper-- Operating cost $66.48/t milled; cash cost $1.81/lb copper (including royalty)-- The Life of Mine copper recovery is estimated to average 88.3%(i) $3.05/lb copper price is based on the Energy and Metals ConsensusForecast's (EMCF) Mean price as of April 26, 2013 (the "EMCF Price"). TheEMCF Price is a forward looking consensus of metal prices among 20 leadinginternational financial institutions and is published by ConsensusEconomics, UK.(ii) Post-tax economic values were calculated by applying the followingtaxes based on enacted tax law and regulations as of June 10, 2013: UnitedStates Federal corporate income taxes, Montana State income taxes, Montanametalliferous mines license taxes, and Montana mines gross proceeds taxes.The calculation of post-tax economic values did not account for loss carryforwards and unutilized tax pools which would be expected to reduce actualtaxes payable.