13, 2013, Vancouver, BC – Curis Resources Ltd. (“Curis” or the “Company”) (TSX: CUV), is pleased to announce the results of the Prefeasibility Study (PFS) on its Florence Copper Project in central Arizona, USA. The PFS report is authored by M3 Engineering & Technology Corp. (U.S.), with input from a number of other specialized and experienced consulting and advisory firms in the areas of hydrology, geology, in-situ extraction, oxide metallurgy and cultural resources.
The PFS supports the findings of the Company’s September 2010 Preliminary Economic Assessment (PEA) projecting low capital and operating costs and favorable economic potential.
Highlights of the outcomes of the base case analysis are as follows:
- The base case economics utilize a US$2.75 per pound long-term copper price and an average design production rate of 55 million pounds (27,500 tons) of copper per year in the first 5 years, rising to 85 million pounds (42,500 tons) in year 6.
- The base case economics indicate pre-tax Net Present Value (NPV) of US$748 million at a 7.5% discount rate with an Internal Rate of Return (IRR) of 38% and a pre-tax 2.4-year payback of initial capital.
- At a US$3.00 per pound copper price, the pre-tax NPV increases to $875 million and the project has an IRR of 41%.
- Life of project direct operating cost is estimated at US$0.79 per pound copper recovered.
- Initial capital costs are estimated at US$196 million. This represents an 18 % decrease from the initial capital cost estimate presented in the 2010 PEA. The commercial operating life of the project has also been extended from 19 to 25 years.
- Operations will occur on land owned by and leased by Curis from the Arizona State Land Department (ASLD) for a total of 13 years. The first 9 years of copper production will occur exclusively on ASLD land and are scheduled to begin in 2016. In year 10, production would expand on to private patented land owned by Curis.
“Completion of a positive Prefeasibility Study for the Florence Copper Project is a critical milestone for Curis,” said Michael McPhie, President and CEO of Curis Resources Ltd. “The study further confirms the robust economic potential indicated by the Company’s 2010 PEA. And with capital and operating costs that are estimated to be among the lowest in the global copper industry and a revised near term development plan now in place that provides a clear path to commercial operations, the PFS demonstrates both the economic and technical viability of the Florence Copper Project.”