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On an after-tax basis, technical-economics indicate an NPV6% of US$150 million with an IRR of 28%. Payback will occur 3 years from the start of production. Economic results are summarized below.
Table 4: Economic Results(1)-------------------------------------------------------------------------------------------------------------------------------------------------------- LoM Value LoM Value Unit Cost (US$000s) (US$000s) (US$/tonDescription Pre-Tax Atfer-Tax product)----------------------------------------------------------------------------Gross Revenue $943,000 $943,000 $236Marketing ($4,000) ($4,000) ($1.00)Royalties (5% sales) ($47,000) ($47,000) ($11.80)----------------------------------------------------------------------------Gross Income $892,000 $892,000 $223Mining Costs ($50,800) ($50,800) ($12.70)Processing Costs ($204,200) ($204,200) ($51.10)G&A Costs ($6,000) ($6,000) ($1.50)----------------------------------------------------------------------------Operating Costs ($261,000) ($261,000) ($65.30)Mine Capital ($1,100) ($1,100) -Process Capital ($66,700) ($66,700) -Tailings Capital ($11,800) ($11,800) -Owner Capital ($3,700) ($3,700) -----------------------------------------------------------------------------LoM Capital ($83,300) ($83,300) -Taxes ($190,400) -----------------------------------------------------------------------------Subtotal Capital & Tax ($83,300) ($273,700) ---------------------------------------------------------------------------------------------------------------------------------------------------------CASH FLOW $357,300 $357,300 -NPV6% $236,700 $150,000 -IRR 37% 28% ---------------------------------------------------------------------------------------------------------------------------------------------------------(1) Differences in totals and subtotals are due to rounding, and are notmaterial to the results presented.
The technical economics results for the PFS and its supporting Mineral Resource estimate presented in this press release was completed by SRK Consulting (US) Inc. ("SRK") in Lakewood, Colorado. Tetra Tech ("TT") in Denver, Colorado was commissioned by the Company to complete design of the Proposed Tailings Facility (PTF). HDR, Inc. (HDR) in Boise, Idaho was commissioned by the Company to aid in permitting and environmental issues. Roberts & Schaefer ("R&S"), a KBR Company, was commissioned to complete the design for the planned processing and product packaging facilities.
Dr. Bart Stryhas constructed the geologic model and resource estimation results reported herein. He is responsible for the resource estimation methodology and the resource statement. Dr. Stryhas is a Qualified Person (QP) and is independent of the issuer applying all of the tests in Section 1.4 of NI 43-101. Valerie 0bie (QP) completed the reserve estimation reported herein and is responsible for the economic assessment.
