The National Instrument 43-101 technical report summarizing the results of the PEA will be available on the Lumina's website (www.luminacopper.com) and SEDAR (www.sedar.com) by May 25, 2013.
Project Economics
A cash flow valuation model for the Project has been developed based upon the geologic and engineering work completed to date for the PEA. The model was developed using a long term forecast copper price of $2.75/lb. This price forecast is consistent with the current, consensus long term price forecast of $2.89/lb copper made by 21 banking analysts (source: Thomson One Analytics, March 2013). In addition, long term by-product metal prices of $1,200/oz gold and $12/lb molybdenum were used.
The following table shows the estimated after tax NPV for the Project's cash flows at various discount rates:
----------------------------------------------------------------------------Discount Rate NPV(Real) (millions)----------------------------------------------------------------------------4% $4,610----------------------------------------------------------------------------6% $3,120----------------------------------------------------------------------------8% $2,090----------------------------------------------------------------------------10% $1,350----------------------------------------------------------------------------12% $820----------------------------------------------------------------------------
The following figure shows the sensitivity of the estimated after tax NPV (8% discount rate) and estimated after tax IRR to changes in the copper price:
To view the figure associated with this release, please visit the following link: http://media3.marketwire.com/docs/lcc409i.jpg
Mineral Resources
The most recent mineral resource estimate for the Project (effective date of October 30, 2012) completed by Sim Geological Inc. and BD Resource Consulting, Inc., and the corresponding block model, has been used to develop the mine plan and production schedule for the PEA.
The Project's current mineral resource estimate (at a 0.3% copper equivalent cutoff grade) is shown in the table below:
----------------------------------------------------------------------------Size(1) Grade Contained Metal----------------------------------------------------------------------------Tonnes CuEq(3) Cu Au Mo Cu Au Mo(Million) (%) (%) (g/t) (%) (B lb) (M oz) (M lb)-------------------------------------------------------------------------------------------------------------------------------------------------------- Indicated Resources----------------------------------------------------------------------------2,165 0.57 0.44 0.08 0.013 21.15 5.56 615.8---------------------------------------------------------------------------- Inferred Resources(2)----------------------------------------------------------------------------921 0.47 0.37 0.05 0.012 7.55 1.57 235.4----------------------------------------------------------------------------Notes:(1) Mineral resources have been estimated as at October 30, 2012. Totals may not add up due to rounding.(2) Inferred mineral resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of inferred mineral resources will ever be upgraded to a higher category.(3) Copper equivalent (CuEq) calculated using $2.00/lb Cu, $800/oz Au and $12.00/lb Mo and is not adjusted for mining and metallurgical recoveries as these remain uncertain. The formula used is as follows: CuEq = Cu% + (Au g/t x 0.583) + (Mo% x 6).
