Virgin Metals Announces New Preliminary Economic Assessment for Los Verdes

Company News

A new Preliminary Economic Assessment on its 100% owned Los Verdes Project in Sonora Mexico has been announced by Virgin Metals Inc. (TSXV:VGM).

The Los Verdes deposit PEA is based on an updated resource estimate completed by Golder Associates which contains a total resource (measured + indicated) of 7.7MM tonnes – 0.64% copper, 0.12% molybdenum, 0.07% tungsten, 4.75 g/t silver (see Los Verdes Resource Estimate section for details). The study envisions the construction of a new mine and processing facility with an average annual production rate of approximately 1 MM tonnes over a 7-year mine life. Highlights from the study are as follows:
Mineable Resources*: 7 MM tonnes (0.67% Cu, 0.13% Mo, 0.07% W, 4.85 g/t Ag)
Metal Prices: Copper $2.50/lb; Molybdenum $15.00/lb; Silver $20.00/oz; Tungsten $7.20/lb(W)
Initial Capital Costs: $92 MM (additional $18 MM sustaining capital over life of mine)
Mine Production Rate: 3,000 tonnes per day
Cash Costs: -$0.73 /lb of copper after byproduct credits (-$0.32/lb excluding tungsten)
Metallurgical Recovery: 85% for copper/molybdenum/silver
*Estimate of mineable resources was prepared by the production of a preliminary Whittle™ pit outline using economic parameters from current PEA.No dilution factor was applied to recovered grades due to the fact that essentially all (+95%) of the resource blocks were mineable.