Sensitivity tables for changes in capital costs, operating costs, metal prices, and discount rates are shown below. The Project's NPV is most sensitive to grade, metal prices, followed by operating costs, and least sensitive to capital costs.
Table 8. Project Economics Sensitivity
---------------------------------------------------------------------------- Pre-tax NPV (8.0%) ($M) Average Full Production Year EBITDA ($M) ------------------------------------------------------------ -15% 0% 15% -15% 0% 15%----------------------------------------------------------------------------Capital Cost 260.0 192.7 125.4 120.4 120.4 120.4Operating Cost 249.5 192.7 135.9 131.2 120.4 109.7Metal Prices 22.1 192.7 359.8 86.9 120.4 153.3----------------------------------------------------------------------------
Table 9. Project NPV Sensitivity to Discount Rate
----------------------------------------------------Discount Rate Pre-tax NPV ($M) After-tax NPV ($M)----------------------------------------------------7.0% 226.3 175.37.5% 209.1 160.38.0% 192.7 146.0----------------------------------------------------
Project Schedule
Project construction is expected to commence in the Spring of 2013, subject to project financing. Site earthworks are expected to begin in Q3 2013, mill and site construction in Q4 2014, and tailings construction in Q1 2015, with commissioning and production beginning in Q4 2015.
Technical Report
A NI 43-101 Technical Report will be filed within 45 days on SEDAR and will be available at that time on the corporate website.
Qualified Persons
The technical content of this release was reviewed by Keith Boyle, P. Eng., Chief Operating Officer of Chieftain Metals Inc. and qualified person under NI 43-101.
The Feasibility Study was conducted under the overall review of Gordon Doerksen, P. Eng. of JDS Energy and Mining Inc. of Vancouver, British Columbia, and serves as Principal Author of the Technical Report.
The following Independent Qualified Persons have assumed authorship of this report:
Gordon Doerksen P. Eng., Project Director, JDS Energy and Mining Inc.Gilles Arseneau Ph.D., P. Geo. Associate Consultant, SRK Consulting (Canada) Inc.Robert Marsland P. Eng., Senior Environmental Engineer, Marsland Environmental AssociatesDavid West P. Eng., David West ConsultingHarvey McLeod P. Eng., P.Geo., Klohn Crippen BergerKenneth Sangster Independent metallurgical consultant
About Chieftain Metals Inc.:
Chieftain Metals Inc.'s principal business is the acquisition, exploration and development of mineral properties. Since incorporation, the Company's business has focused entirely on the acquisition, and thereafter the development, of the Tulsequah Chief Polymetallic Project, in north-western British Columbia, Canada. Chieftain's Property consists of 39 mineral claims and Crown-grants covering approximately 14,089 hectares and covers two previously producing mines. For more information on Tulsequah and related projects, please refer to the Company's NI 43-101 compliant technical reports, "Tulsequah Chief Deposit, Tulsequah Chief Property, Northern British Columbia" and "Big Bull Project, Tulsequah Chief Property, Technical Report, Northern British Columbia", each dated as of November 8, 2010 and available under the Company's profile on SEDAR (www.sedar.com).
Forward-Looking Information:
This press release includes certain "forward-looking statements" within the meaning of the Ontario Securities Act or other laws or regulations. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization, mineral resources or reserves, exploration results, future plans and objectives of Chieftain Metals Inc. are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Contacts:
Chieftain Metals Inc.
Victor Wyprysky
President & CEO
(416) 479-5411
vw@chieftainmetals.com
Chieftain Metals Inc.
Timothy Lee
Director, Investor Relations
(416) 479-5415
timothy.lee@chieftainmetals.com
