Robust Definitive Feasibility Study Revealed For Romanian Gold-Copper Project
Euro Sun Mining Inc. (TSX: ESM) has received positive results from a Definitive Feasibility Study (DFS) on the Colnic and Rovina open pits – the initial phase of development of its Rovina Valley Gold and Copper Project in Romania.
Along with the DFS, also unveiled an updated mineral resource estimate for the Rovina Valley Project incorporating current metal prices and operating parameters.
CEO, Scott Moore, said Euro Sun is utilising a phased development approach for the Rovina Valley Project. The Rovina Valley Project consists of two open pit gold-copper deposits, Colnic and Rovina, and the underground Ciresata gold-copper deposit. The DFS is focused on the exploitation of the two open pit operations. The Ciresata underground deposit is expected to be phased in following the completion of the Colnic and Rovina pits.
Highlights:
- Average annual gold equivalent production of 146,000 ounces in year 1-10, consisting of 106,000 ounces of gold and 19 million pounds of copper per annum
- Average AISC of US$790/gold equivalent ounces in years 1-10
- Initial capex is expected to be US$399 million (including US$12.7 million in pre-strip)
- Pre-Tax NPV5% of US$447 million with an IRR of 21.3% and Post-Tax NPV5% of $359 million with an IRR of 19.2% at US$1,550/oz gold and $3.30/lb copper
- Processing 21,000 tonnes per day incorporating simple flotation and dry stack tailings
- Phase 1 production of over 1.3 million ounces of gold and 400 million lbs of copper (185k tonnes) over 16.8 years
“The 2021 Definitive Feasibility Study highlights a positive economic project for our initial phase of development at the Rovina Valley Project,” Mr Moore said.
“An expanded life of mine to almost 17 years coupled with a conservative metal price model has delivered an NPV almost 100% higher than the PEA of 2019.
“The DFS delivers a much higher degree of confidence in both the capital required to build the project and the operating costs, even when utilizing higher cost dry stacking.
“At spot copper and gold prices, the NPV almost doubles again highlighting the enormous leverage of the Rovina Valley Project.”
The Rovina Valley Project is situated in the Hunedoara county of Transylvania in western – central Romania. It consists of three deposits, Rovina to the North, Colnic Central and the Ciresata deposit to the south. The DFS only incorporates with the Rovina and the Colnic deposits while the Ciresata deposit can be brought into the project for development later. The Rovina exploration licence is held by Samax Romania S.R.L a Romanian registered company which is a wholly owned subsidiary of ESM. Since November 2018, ESM has possessed an exploitation permit and mining licence with a renewable 20-year validity.
The Colnic and Ciresata deposits are described as gold-copper porphyries while the Rovina deposit is termed a copper-gold porphyry. All three of these deposits are located such that they can access a central processing plant. The Rovina Valley Project processing facility is being designed to produce a gold and copper concentrate from the Colnic and Rovina deposits.
The Rovina Valley Project is within the Golden Quadrilateral Mining District of the South Apuseni Mountains, an area with a history of mining dating back to Roman times. This has supported the development of excellent infrastructure including rail, power and paved access roads. In addition, there are two international airports less than 180km from the project location. These being in the cities of Timisoara and Sibiu. The town of Brad is within 5km of the project site from where there will be a good source of local skilled labour. Sourcing the right skills and resources locally supports ESM community upliftment opportunities.
The Project is planned to be mined with a standard open-pit mining method using articulated trucks and a hydraulic loader. The open pit mining operation is anticipated to last approximately sixteen and a half years, during which the lower-grade material will be stockpiled on a pad close to the primary crusher location for treatment over another eighteen months.
Over the life of the project, it is expected that 133.4 Mt of ore will be mined. Of this ore, 119.4 Mt will be delivered to the processing facility and 14 Mt low grade ore stockpiled for future processing. A total of 246.7 Mt of material will be mined and placed on the waste facility, representing a life of mine stripping ratio of 1.85:1.
