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The salient details of the PEA are summarized in the table below:
----------------------------------------------------------------------------NPV (8% discount rate) $2.1 billion----------------------------------------------------------------------------IRR 17.2%----------------------------------------------------------------------------Metal Prices $2.75/lb Cu $1,200/oz Au $12/lb Mo----------------------------------------------------------------------------Initial Capital Expenditure $3.0 billion----------------------------------------------------------------------------LOM Total Sustaining Capital Expenditure $1.8 billion----------------------------------------------------------------------------LOM C-1 Cash Costs (net by-product credits) $1.11/lb Cu sold----------------------------------------------------------------------------LOM Average Annual Metal Production 244,000t Cu 110,000oz Au 4,100t Mo----------------------------------------------------------------------------LOM Strip Ratio 1.57:1----------------------------------------------------------------------------Mine Life 28 years----------------------------------------------------------------------------
Note: The PEA is preliminary in nature and includes the use of 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. Thus, there is no certainty that the PEA will be realized. Actual results may vary, perhaps materially. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Lumina will host a conference call on Tuesday, April 9th, 2013 at 11:00 am (Pacific Time) or 2:00 pm (Eastern Time) to discuss these results. Call-in information is provided at the end of this news release.
The PEA was supervised by Kevin Scott P.Eng., an independent qualified person. Mr. Scott has reviewed and approved the contents of this news release. The PEA was managed by MTB Project Management Professionals, Inc. (project management, infrastructure, ancillary capital and operating costs and cash flow modeling) and comprised several studies prepared by: SIM Geological Inc. and BD Resource Consulting, Inc. (mineral resource estimate and model, quality assurance, quality control program); CH Plenge & Cia S.A. (metallurgical and ARD test work); Wyllie & Norrish Rock Engineers Inc. and Fisher & Strickler Rock Engineering, (rock mechanics and pit slope design); WLR Consulting, Inc. (mine plan, production schedule, mining capital and operating costs); Ausenco (process engineering, infrastructure, capital and operating costs); TFP Construcciones SRL (rail study, capital and operating costs); Ausenco (tailings and waste rock storage, hydrogeology, capital and operating costs); Hugo Gil Figueroa & Asociados (power supply capital and operating costs); Schlumberger (water treatment capital and operating costs); H&H Metals Corp. (marketing study); RungePincockMinarco (metallurgical and mining peer reviews); Gochnour & Associates, Inc. (environmental management); and Social Capital Group (socioeconomic studies).
