CHILE – Toronto’s AUR RESOURCES says the feasibility study is positive for development of the hypogene copper-gold deposit at the Andacollo mine in north-central Chile. The study indicates that, at a copper price of US$1.20/lb and a gold price of US$400/oz, the deposit can produce, on average, 68,700 tonnes of copper and 57,900 oz of gold annually for 21 years. The US$336 million of pre-production capital would be paid back in 5.1 years. Initial production is slated for late 2009.
The hypogene deposit has measured and indicated mineral reserves of 423.0 million tonnes at an average grade of 0.38% Cu and 0.13 g/t Au. The deposit lies beneath the producing Andacollo supergene copper mine. A development decision may be made at the end of July.
The two Andacollo deposits are 100%-owned by Compania MINERA CARMEN DE ANDACOLLO, which itself is owned 63% by Aur, 27% by COMPANIA MINERA DEL PACIFICO, and 10% by ENAMI.
The basic details of the feasibility study, conducted by AMEC INTERNATIONAL (CHILE), are available at www.AurResources.com in the News Releases.