Bear Creek Mining Corporation announced the results of a positive Feasibility Study (the "FS" or "Feasibility Study"), as defined by Canadian Securities Administrators National Instrument 43 - 101, for its 100%-owned Corani silver-lead-zinc deposit located in southern Peru on June2nd 2015. Highlights of the FS include (all figures in US dollars):
- The study defines a significant undeveloped silver deposit containing proven and probable mineral reserves of 228 million ounces of silver, 2.8 billion pounds of lead and 1.8 billion pounds of zinc.
- The base case after-tax net present value ("NPV") is $660 million at a 5% discount rate with an internal rate of return ("IRR") of 20.9% ($20/oz silver, $0.95/lb lead and $1.00/lb zinc).
- Average annual payable silver production is 13.4 million ounces per year for the first five years and 8.4 million ounces per year over the life-of-mine ("LOM").
- Cash cost is negative $(0.23) per ounce of silver for the first five years, with a LOM cash cost of $3.85 per ounce of silver (net of base metal credits).
- Project produces marketable Lead and Zinc concentrates. Metallurgical testing has established conventional flotation recoveries.
- Total capital (Initial capital of $628 million + sustaining capital of $39 million) cost is $667 million with capital payback of 3.6 years at base case metal prices.
- Mine life is 18 years.
- Mill capacity is 22,500 tonnes per day.
- Stripping ratio is 1.68:1 (waste:ore).
- 83 million of measured and indicated silver resource ounces represent potential future reserve conversion.
Under the Feasibility Study, the Corani project has an after-tax IRR of 20.9% and a NPV of $660 million at a 5% discount rate based on metal prices of $20/oz silver, $0.95/lb lead and $1.00/lb zinc. The financial model incorporates the tax and royalty legislation utilized by the Peruvian government.
The Feasibility Study has been prepared using cost bids, estimates and production forecasts provided by qualified engineering consulting groups led by M3 Engineering, Tucson, Arizona. The economic analysis was performed by M3 Engineering.