March 19, 2013 05:30 ET
Geologix Explorations Announces Results of Positive Prefeasibility Study at Tepal
http://www.marketwire.com/press-rel...lity-study-at-tepal-frankfurt-gf6-1769328.htm
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 19, 2013) - Geologix Explorations Inc. (the "Company" or "Geologix") (TSX:GIX)(FRANKFURT:GF6)(BERLIN:GF6)(MUN:GF6)(STUT:GF6)(OTCQX:GIXEF) is pleased to announce the results of its Prefeasibility Study ("PFS") at its 100% owned Tepal Gold-Copper Project (the "Project" or "Tepal") in Mexico.
HIGHLIGHTS
•The Project's estimated post-tax NPV, at a 5% discount, is $421 million with an IRR of 28%.1
•The Project's estimated pre-tax NPV, at a 0% discount, is $925 million with an IRR of 36%.1
•The Project's estimated payback period is 2.7 years pre-tax and 3.2 years post-tax.1
•Pre-production capital costs for the Project are estimated to be $354 million.
•The Project is expected to produce an average of 117,000 ounces of gold and 49 million pounds of copper annually over its initial seven years of operation.
•The Project has an estimated mine life of 11.5 years, and an average milling rate of 38,700 tonnes per day.
•Life of mine cash costs of production, net of by-product credits, are estimated to be $170/oz. for gold or $0.62/lb. for copper. 1
[1] Based upon statistical four year trailing average metal prices stated in the 'Economics' section below
"We are very pleased to announce the completion of Tepal's PFS, and encouraged by these promising results," stated Dunham Craig, Geologix's President and Chief Executive Officer. "The production estimates presented by the PFS exceed our previous internal estimates, and we believe the anticipated pre-production capital costs are manageable. "
"As a result of a redesign of our mill process plant, the completion of this PFS took several months longer than we initially anticipated. Fortunately, the Company utilized this delay to acquire vendor, contractor, and supplier quotations for all major equipment, construction costs, and supplies required by the Project. The benefit of these refined quotations is a significant increase in the accuracy of our operating and capital cost estimates."
"Geologix also proceeded with work on a Feasibility Study for Tepal during these months. As a result, we anticipate completing this major milestone during the current year. The other major objective in our near future is to secure financing for the Project's pre-production capital cost of $354 million. We believe this funding should be available through a consortium of metal traders and streamers, smelters, equipment financiers, and commercial bank syndicates. The Company is currently in active discussions with multiple institutions within these groups."