Kopy Goldfields is happy to announce positive scoping study results for the Krasny gold project. The study confirms potential for 60 koz of open pit production of gold per year during 18 years, with strong financial returns of USD 360 million in free cash flow.
Highlights of the scoping study:
· Total gold resources mined - 1.3 Moz (40.7 tons) at an average grade of 1.53 g/t
· Annual gold production - 62.8 koz (1,955 kg)
· Undiscounted project value - USD 362 million (USD 458 million pretax)
· Discounted project value (NPV) - USD 192 million at 5% discount rate (USD 101 million at 10%)
· IRR ‐ 23.9%
· Annual average revenue from gold sales - USD 105 million
· Annual average profit before tax - USD 26.5 million
· Capital costs (plant, open pit, infrastructure) - USD 147 million
· Production costs (mining and processing) - 855 USD/oz
· Average Gold price - 1,670 USD/oz (sensitivity analysis shows positive cash flow at a gold price of 1,240 USD/oz)
· Plant capacity - 1.5 million tons per year
· Average strip ratio - 4.6 m3/t
· Overall recovery - 85%
· Life of mine - 18 years
Mikhail Damrin, CEO of Kopy Goldfields, commented the results:
- We are very pleased with the results of the scoping study. It demonstrates that with only the part of the mineralization which is now included into the resource estimation, the Krasny project already has the capacity to be developed into a significant long term gold producer. Our license terms for the Krasny property already include production permit. In order to move Krasny into production, we need to convert more Inferred resources into the Indicated and Measured categories via in‐fill drilling and complete Feasibility Study. I however believe that we now have sufficient information over the Krasny project to attract and negotiate a good deal with a potential partner to develop the project further.
The Scoping study was performed by Alexey Nikandrov, MSc, MAIG № 3084 of LLC Miramine ("Miramine"). The full text of the Scoping study is available on the Company web site.
Stockholm, April 26, 2013
For more information, please contact:
Mikhail Damrin, CEO, +7 916 808 12 17, mikhail.damrin@kopygoldfields.com
Tim Carlsson, CFO, + 46 702 31 87 01, tim.carlsson@kopygoldfields.com
The following documents can be retrieved from beQuoted
Kopy Goldfields Pressrelease 2013-04-26 (English).pdf
Kopy Goldfields Pressrelease 2013-04-26 (Swedish).pdf
Mer information från beQuoted
Nyhetsrum Kopy Goldfields (Swedish)
About Kopy Goldfields AB
Kopy Goldfields AB (publ), listed at NASDAQ OMX First North in Stockholm is a gold exploration and production company operating in one of the most gold rich areas in the world; Lena Goldfields, Bodaibo, Russia. The major owner is Eldorado Gold Corp. The company holds 100% of 15 bedrock exploration‐ and production licenses on 2,338 sq km. The long term target is to develop a gold exploration and production company with resources of 5Moz supporting annual gold production of 0.2 Moz within new and existing licenses. Kopy Goldfields AB applies International Financial Reporting Standards (IFRS), as approved by the European Union. Aqurat Fondkommission acts as Certified Adviser, contact number: +46‐8‐544 987 55.
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Ticker: KOPY
www.nasdaqomxnordic.com/firstnorth/
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