International Wayside Receives Positive Pre-Feasibility Study and Updates Resources at Bonanza Ledge Gold Project, B.C.
10 Septiembre 2009 - 8:02AM
Marketwired Canada
International Wayside Gold Mines Ltd (the "Company") (TSX
VENTURE:WYG)(FRANKFURT:IWUB), announces that it has received a Preliminary
Feasibility Study ("PFS") including an updated NI 43-101 compliant resource
estimate, on the Bonanza Ledge Gold Project, B.C. Canada. The Base Case
economics at $750 per ounce gold show a pre-tax Internal Rate of Return of 44%
and a pre-tax cash flow of US$6.7 million. The payback period for the initial
capital of US$3.6 million is approximately 2.5 years. The open pit operation
will mine ore at a rate of 220 tons (200 tonnes) per day and is expected to
produce an average of 20,000 ounces of gold per year by batch tolling milling at
a nearby CIP plant for an estimated mine life of 4 years.
Project Economics & Metal Price Sensitivities
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Pre-Tax NPV Pre-Tax NPV
Average Pre-Tax Cash @ 5% @ 8%
Economic Gold Price Flow Pre-Tax IRR Discount Discount
Case (US$) (US$) % (US$) (US$)
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Low 650 742,344 6.3 131,501 (164,400)
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Base 750 6,698,638 43.8 5,060,800 4,262,079
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Moderate 850 13,364,446 77.7 10,509,332 9,124,933
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Moderate-High 950 20,497,198 111.8 16,319,433 14,299,970
(Current Price)
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High 1050 27,755,213 140.4 22,207,927 19,527,628
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Metal prices for the Base Case were established by EBA Engineering Consultants
Ltd. ("EBA") and assume $750 per ounce of gold for the life of mine. The Company
has also run project sensitivity analyses using variations of capital and
operating costs as well as metal recoveries. These analyses indicate that the
project is relatively insensitive to capital costs but more sensitive to
operating costs, metal recoveries and pricing. Other defining parameters of the
study are:
- The strip ratio for this reserve is estimated at an average of 18:1 over a
mine life of 4 years. The first year has an average strip ratio of 33:1
including pre-stripping. An optimized Phase I starter pit can reduce the first
years strip ratio to 12:1.
- Average predicted mill recoveries are 93% for gold.
- Overall pit slopes are estimated at 37 degrees.
Capital & Operating Costs
- Initial capital costs are estimated at US$3.6 million, including a 15%
contingency and, working capital of US$130 thousand. Sustaining capital costs
are estimated at US$260 thousand over the 4 years mine life.
- Cash operating costs for life of mine are approximately US$509 per ounce of gold.
The study has taken 14 months to complete and has involved the focused efforts
of a team of independent qualified persons, professionals and consulting
companies that included EBA (Overall Report), F. Wright Consulting Inc.
(Metallurgy), and Mintec (Resources and Reserves).
Proven and Probable Reserves (August 31, 2009)
Bonanza Ledge Mineral Reserves
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Reserve Metric Au Short Au Contained Gold
Category(1) Tonnes gpt Tons opt Ounces(2)
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Proven 130,726 10.23 144,099 0.298 42,900
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Probable 166,810 8.11 183,875 0.237 43,500
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(1) Conforms to NI 43-101, 43101CP and current CIM definitions for
resources. All numbers are rounded.
(2) Cutoff grade is 2.44 gpt Au. These reserves are diluted and mine
recoverable.
The following resource table shows the Measured, Indicated and Inferred Mineral
Resources that include the Mineral Reserves and are based on 230 drill holes.
Measured, Indicated and Inferred Mineral Resources (August 31, 2009)
Bonanza Ledge Mineral Resources
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Reserve Metric Au Short Au Contained Gold
Category(1) Tonnes gpt Tons opt Ounces(2)
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Measured 234,677 6.69 258,685 0.195 50,392
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Indicated 334,433 5.31 368,645 0.155 57,140
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Inferred 373,123 6.10 411,293 0.178 73,087
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(1) Conforms to NI 43-101, 43101CP and current CIM definitions for
resources. All numbers are rounded.
(2) Cutoff grade is 0.69 gpt Au.
EBA including N. Eric Fier, CPG, P.Eng., Lara Reggin, P.Geo., Scott Martin,
P.Eng.; F Wright Consulting including Frank Wright P.Eng.; and Mintec including
Abdullah Arik, AusIMM are the Independent Qualified Persons for this news
release and have reviewed and approved its contents. An NI 43-101 Technical
Report detailing the results of the PFS and increased resources will be filed on
SEDAR within 45 days of this release.
J Frank Callaghan, President and CEO of the Company stated, "We are pleased to
have completed and received the PFS and updated NI43-101 resource on the Bonanza
Ledge Gold Project and are excited with the results. The Company continues to
take positive steps towards our stated goal of project development in Q4 2009
pending receipt of required operating permits. Existing resources combined with
the exploration upside on the Company's projects, cast a bright light leading us
forward".
International Wayside Gold Mines Ltd. Resources 0.69 gpt Cutoff
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Contained
Grade Gold
Area Category(1) Tonnes (g/t) Ounces(2) Prepared by
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Cariboo Indicated 6,013,000 2.23 430,885
Gold --------------------------------------------- Giroux 2006
Quartz Inferred 1,527,000 1.85 90,936
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Measured 234,677 6.69 50,392
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Bonanza Ledge Indicated 334,433 5.31 57,140 Mintec 2009
---------------------------------------------
Inferred 373,123 6.10 73,087
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Indicated 296,000 5.31 50,600
BC Vein --------------------------------------------- Giroux 2002
Inferred 291,000 2.40 22,400
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(1) Conforms to NI 43-101, 43101CP and current CIM definitions for
resources. All numbers are rounded.
(2) Cutoff grade is 0.69 gpt Au.
About International Wayside Gold Mines
International Wayside Gold Mines has been developing its Cariboo Gold Project in
Barkerville, B.C., which encompasses (from northwest to south east) the former
producing Hardscrabble Tungsten Mine, Mosquito Creek Gold Mine (now on care and
maintenance), Aurum Mine, Island Mountain Mine, Cariboo Gold Quartz Mine,
Bonanza Ledge (proposed mine), the Cariboo Thompson Gold & Silver Mine and the
Cariboo Hudson Mine.
The Company has also entered into a letter of intent with 0373849 B.C. Ltd.
(formerly Cross Lake Minerals Ltd.) ("Cross Lake") pursuant to which the Company
will purchase a subsidiary of Cross Lake holding all of Cross Lake's interest in
the QR Mine and Mill (the "Sale Transaction"). Concurrently with the completion
of the Sale Transaction, the Company will enter into a Spin-off Transaction to
transfer all of its properties, including the QR Mine and Mill, Cariboo Gold
Project, and its assets, liabilities and obligations, to Barkerville Gold Mines
Ltd. ("Barkerville"), a wholly-owned subsidiary of the Company, in exchange for
shares of Barkerville (the "Barkerville Shares") and will then distribute the
Barkerville Shares to the shareholders of the Company on the basis of one
Barkerville Share for each share of Wayside. The Sale Transaction and Spin-Off
Transaction (together, the "Transactions") will be structured as a Plan of
Arrangement involving the Company, its security holders, Cross Lake and
Barkerville pursuant to the provisions of the B.C. Business Corporations Act.
The final terms of the Transactions will be modified to the extent necessary to
give effect to tax and legal advice to be sought by the parties.
Barkerville will make an application to list its shares on the TSX Venture
Exchange (the "TSXV"). This transaction is subject to meeting the usual listing
requirements of the TSXV, which will include having the necessary funds to meet
the obligations of operating the QR Mine and Mill, conduct recommended work
programs on its Cariboo Gold exploration projects, satisfy the necessary general
and administrative expenses and having unallocated working capital.
Completion under the Plan of Arrangement will also be subject to obtaining the
necessary shareholder, regulatory and court approvals.
This news release contains forward-looking statements, which address future
events and conditions, which are subject to various risks and uncertainties. The
Company's actual results, programs and financial position could differ
materially from those anticipated in such forward-looking statements as a result
of numerous factors, some of which may be beyond the Company's control. These
factors include: the availability of funds; the timing and content of work
programs; results of exploration activities and development of mineral
properties, the interpretation of drilling results and other geological data,
the uncertainties of resource and reserve estimations, receipt and security of
mineral property titles; project cost overruns or unanticipated costs and
expenses, fluctuations in metal prices; currency fluctuations; and general
market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the
Company's management on the date the statements are made. The assumptions used
in the preparation of such statements, although considered reasonable at the
time of preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements.
ON BEHALF OF THE BOARD OF DIRECTORS
J. Frank Callaghan, President and CEO
International Wayside Gold Mines New Com Npv (TSXV:WYG)
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