EQUIPO NIZKOR |
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08sep04
St. Genevieve acquires Arizona, Nevada copper projects.
Copper production in 6 months planned for the emerald isle mine; $1.5 million private placement arranged; acquisition of zonia mine completed; project financing being sought; listing on CNQ.
St. Genevieve Resources Ltd. has acquired three copper projects located in Arizona and Nevada that, with its property in Haiti, will establish the company as a copper producer. Within the next six months, the company plans to place the Emerald Isle mine into production. The Zonia mine will add a significant drill proven resource of 1.5 billion pounds, and the Haitian copper project will add a further estimated inferred resource of five billion pounds. In addition, the company has completed arrangements for a $1.5-million private placement.
The Emerald Isle open pit copper mine, Arizona: previously operated by El Paso Gas, the mine has a proven reserve of approximately one million tonnes with a grade in excess of 0.75 per cent copper. This project has an 8,000-tonne-per-day SXEW plant on site that will be expanded to 15,000 tonnes per day. The company's objective is to put this mine into production within the next six months to produce 5.4 million pounds of copper per year with a gross revenue of $6.8-million (U.S.) and earnings before interest, taxes, depreciation and amortization of $3.55-million (U.S.) per year (four Canadian cents per share), based on a capital investment of $1-million (U.S.).
Recent analysis of representative samples of the ore material indicates that this deposit has a zinc content of a similar tenor to the copper content. The revenue from the recovered zinc could make a very significant contribution to the operation profitability by increasing the EBIDTA to $5.8-million (U.S.) per year ($7.2-million (Canadian)), representing 72 Canadian cents per share from this operation in the first year alone. Zonia open pit copper mine, Arizona, is a past producing copper mine on which a feasibility study based on over 400 drill holes has established a proven resource of 1.5 billion pounds of copper. According to this study, the Zonia mine is capable of producing 30 million pounds of copper per year and should generate an EBIDTA of $10-million (U.S.) per year assuming a 70-per-cent recovery, a copper price of $1 (U.S.) per pound and a capital expenditure of $17-million (U.S.). Recent tests conducted by Nichromet Extraction Inc. indicated a 95-per-cent recovery, which would create EBIDTA of $20-million (U.S.).
An estimated 12.5 million pounds of copper is estimated to be present in the 25 million tonnes of ore already mined and placed on the heap leach pads. The company plans to start the permitting process with the state of Arizona in anticipation of recommencing production on a stage basis, commencing with this resource. Financing negotiations with potential joint venture partners and prospective purchasers of the cathode copper are continuing.
Haiti copper belt: a recent qualifying report prepared by Ricardo Valls, PGeol, has defined a measured resource on the Douvray copper deposit of 1.2 billion pounds of copper (1.44 million tonnes at a grade of 0.44 per cent copper). The United Nations conducted a drilling program on specific copper deposits within this 10-kilometre-long copper belt in the early 1990s. It estimated a potential for five billion pounds of copper to be present in the Douvray, Blondin and Nicole deposits, all of which are all located within the company's property limits.
Satellite project, Yerington, Nev.: the company has acquired a strategic high-grade copper property located approximately five miles west of Anaconda's past producing Yerrington copper deposit, which produced in excess of two billion pounds of copper. The property is characterized by limestone in contact with andesite volcanics, all cut by felsic dike swarms associated with the formation of the Yerington deposit and the buried Ann Mason deposit (plus 50 million tons of 0.4 per cent copper).
Several large prospect pits have been discovered on the property where it is evident that copper sulphides found in skarn alteration zones were shipped to a local smelter after hand sorting. Abundant copper carbonate (malachite) is present on the surface and references to drilling another fieldwork have been found in the Anaconda archives; however, no drill logs were recovered. The company has recently completed three lines of an induced polarization geophysical survey over the area referenced in the Anaconda documents and it located a zone of anomalous conductive that is over 1,500 feet long. This target will be the object of a drill program within the next three weeks.
In other news, a private placement of $1.5-million has been negotiated and its closing is subject to final legal due diligence. The company will issue 15 million units at 10 cents, each unit comprising one common share and one common share purchase warrant exercisable at 15 cents for a period of 24 months following the closing. A commission of 8 per cent is payable in cash. The proceeds will be mainly used to put the Emerald Isle mine into production.
Starting today, the common shares of the company are listed and trading on CNQ under the symbol SGVL.
[Source: Mr. Bryan Wilson reports, Stockwatch, 08sep04]
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