VANCOUVER, British Columbia, Sept. 3, 2002 (PRIMEZONE) -- Crew Development Corporation (Crew) (TSE:CRU) (Other OTC:CRWVF) has completed its review of the Nalunaq feasibility study prepared by Kvaerner Engineering & Construction UK Ltd. (Kvaerner). The study compares the option of mining and then processing the ore at an offshore facility with the option of mining and processing the ore at a facility on site. The feasibility study recommends that offshore processing should be pursued initially, in order to allow for immediate cash flow and further expansion of the ore resources at minimal capital investments.
An initial mining rate estimated at 350 tonnes per day will result in a gold production of about 90,000 oz per year at a total cash cost of US $169 per oz. The feasibility study recognises that the current measured and indicated resource of approximately 400,000 oz gold has significant upside potential that may be developed in parallel with the mining and offshore processing operation.
Total capital requirements are estimated at US $9.7 million for offshore processing versus US $25.6 million for an on-site processing plant. Kvaerner concludes that shipping the Nalunaq ore to an offshore processing facility is financially preferred and is recommended as a first stage development for the Nalunaq Gold Mine. The high-grade gold nature of the Nalunaq ore and the location of the mine close to navigable waters, allows for the expansion of the resources by means of revenues generated from offshore processing. Shipping the ore to an offshore plant with excess processing capacity will also minimize environmental impact while maintaining employment benefits to the local community.
The project will be financed through the previously announced US$8 million credit facility with Standard Bank London Limited (currently in documentation) plus the net revenue from the processing of the current stockpile holding approx. 20,000 oz. and resources derived from the 2002 exploration program.
The feasibility study was prepared under the supervision of Martin Errington, C.Eng. FIChemE of Kvaerner Engineering & Construction UK Ltd., who is a Qualified Person for this study, please click on the following link to view the excerpts from the Executive Summary: http://www.primezone.com/media/temp_nr/crew_090302.pdf