Vancouver, BC � September 15, 2008
INTERNATIONAL BARYTEX RESOURCES LTD. (�the Company�) (TSX-V: IBX) on behalf of its subsidiary, East
China Capital Holdings Ltd., has delivered a Feasibility Study on the Shituru
Copper Project to La Generale des Carrieres et des Mines (Gecamines), its
partner in the project, in accordance with the requirements of its joint
venture agreement (Mining Contract).
The Feasibility Study proposes
developing an open pit, ore processing and electrowinning facility with an
annual production capacity of 38,000 tonnes of LME grade cathode
copper. The lead consultant for the Feasibility Study was Bateman
Minerals and Metals with the Mineral Resource and Mineral Reserve estimates
prepared by SRK Consulting; both companies are Johannesburg based.
The project scope is largely unchanged
from the Preliminary Assessment disclosed in January 2008 with the exception
that the annual ore processing rate has been reduced to 900,000 tonnes per
year. The decision to design on a lower throughput was based on the
Feasibility Study production schedule having higher grades thereby allowing
copper production to be maintained while processing ore at slower rates.
A Summary of the Feasibility Study
results is provided below:
Mineral Resource 1,2,3
At a 1.0% Copper Cut-off Grade
Resource
Category
|
Low Carbonate
|
Hi Carbonate
|
Talc
|
Total
|
|
Tonnes (Mt)
|
%TCu
|
Tonnes (Mt)
|
%TCu
|
Tonnes (Mt)
|
%TCu
|
Tonnes (Mt)
|
%TCu
|
Measured
|
2.11
|
5.15
|
0.55
|
3.08
|
0.97
|
4.87
|
3.63
|
4.76
|
Indicated
|
2.21
|
4.77
|
1.26
|
2.54
|
0.45
|
4.47
|
3.92
|
4.02
|
TOTAL Measured + Indicated
|
4.32
|
4.96
|
1.81
|
2.70
|
1.42
|
4.75
|
7.55
|
4.38
|
Inferred
|
0.22
|
2.51
|
0.01
|
3.38
|
-
|
-
|
0.23
|
2.55
|
1.
Includes the Mineral Reserve. Mineral Resources that are not Mineral
Reserves do not have demonstrated economic viability
2. As of Aug 31,2008
3. See footnote at the end of this news release
The
Mineral Resource was estimated by SRK Consulting of Johannesburg using 3-D
computer modeling and geostatistical estimation techniques.
Mineral
Reserve 4
|
Low Carbonate / Talc
|
High Carbonate
|
Total
|
Reserve Category
|
Tonnes
(Mt)
|
Grade
(%Cu)
|
Tonnes
(Mt)
|
Grade
(%Cu)
|
Tonnes
(Mt)
|
Grade
(%Cu)
|
|
|
|
|
|
|
Proven
|
3.03
|
4.92
|
0.54
|
2.95
|
3.57
|
4.62
|
Probable
|
2.60
|
4.50
|
0.92
|
2.50
|
3.52
|
3.98
|
Total
|
5.63
|
4.73
|
1.47
|
2.67
|
7.10
|
4.30
|
CoG HiCa: 1.06%
|
CoG LoCa & Talc: 0.66%
|
|
Dilution: 5%
|
Mining Recovery: 98%
|
|
|
|
|
|
|
|
|
|
|
4.
As of August 31, 2008
The
Mineral Reserve was determined by SRK Consulting utilizing computerized open
pit optimization techniques with estimated operating costs, results from a
geo-technical drilling program, and metallurgical test work carried out over
the last two years being inputs to the work.
Project
Summary
Tonnes Processed
|
7.24
|
Mt
|
Strip Ratio
|
4.9 : 1
|
|
Average Grade
Life-of-Mine
|
4.3
|
%Cu
|
Metallurgical Recovery
Life-of-Mine
|
86
|
%
|
Copper Recovered
Life-of-Mine Total
|
265.5
|
Kt
|
Average Annual Production
|
34,000
|
t
|
Cash Cost
Life-of-Mine5
|
0.66
|
USD/lb
|
Marketing Costs
|
0.19
|
USD/lb
|
Initial Capital
|
338
|
MUSD
|
Total Capital � Life-of-Mine
|
400
|
MUSD
|
Start of Production
|
Q1-2011
|
|
Mine Life
|
7.8
|
years
|
5.
excludes Royalties
Summary
Economics � After-Tax, After-Royalties, 100% Equity, Project Level
|
Copper
Price � USD/lb
|
|
2.00
|
2.50
|
3.00
|
3.50
|
Forward
Curve then 2.00 USD/lb6
|
Discount Rate %
|
Net
Present Value - MUSD
|
0
|
190
|
387
|
584
|
781
|
371
|
5
|
89
|
239
|
389
|
538
|
242
|
10
|
21
|
138
|
254
|
370
|
152
|
15
|
<25>
|
68
|
159
|
165
|
87
|
|
|
|
|
|
|
Payback from start of production
|
4.3
|
2.7
|
2.4
|
2.0
|
2.2
|
IRR %
|
12
|
22
|
31
|
39
|
26
|
6.
Forward Curve Futures prices for LME grade spot price as of August 25, 2008,
resulting in USD/lb Copper prices of 3.20 � 2011, 3.10 � 2012, 3.00 � 2013,
2.00 thereafter
The
project assumes initial construction of a Whole-Ore-Leach (�WOL�) process
plant and a Solvent Extraction � Electrowinning (�SX-EW�) refinery to produce
LME grade cathode copper. The Feasibility Study estimates 80% of the
ore processed is amenable to Whole-Ore-Leaching. This ore type occurs
mainly in the upper parts of the deposit. It has better grade, better
metallurgical recovery and lower operating costs than the remainder of the
deposit. This results in lower production costs and higher copper production
in the early years of the operation compared to the Life-of-Mine average.
Using
a strategy similar to the January 2008 Preliminary Assessment, lower grade,
higher operating cost, high carbonate ore is stockpiled until Year 5 of
operation. A flotation plant is to be constructed to process this ore
in Year 5. High carbonate ore would then represent 40% of the ore
processed until the end-of-mine life. The flotation plant would produce
an oxide copper concentrate which would then be fed into the leaching circuit
and SX-EW refinery to produce cathode copper. The flotation process
allows high acid consuming (high carbonate) material to be discarded ahead of
the acid leaching process and substantially reduces the processing costs for
this ore type.
The
initial capital cost of USD338million for the project compares to
USD228million estimated in the Preliminary Assessment. This increase
reflects a general increase in material and supply costs as well as labour
costs currently being experienced in the DRC.
Leo
King, President says, � Delivery of the Shituru Feasibility Study to our
partner Gecamines is a significant milestone for the Shituru project.
As noted in earlier news releases over the course of completing the
Feasibility Study a number of areas that would benefit from further
optimization have been identified. We have started work on some of
these areas and intend to pursue others following our review of the
Feasibility Study. We look forward to reporting on this optimization
work as results become available.�
Qualified
Persons
The Mineral Resource estimate was prepared by SRK of Johannesburg with Mr.
Victor Simposya acting as the Qualified Person under NI 43-101 for the
estimate and has reviewed this news release.
The
Mineral Reserve estimate was prepared by SRK of Johannesburg with Mr HG
Waldeck acting as the Qualified Person under NI 43-101 for the estimate and
has reviewed this news release.
Bruno
Barde, P.Geo, Exploration Manager for the Company, supervised the exploration
programme, is a Qualified Person as defined under National Instrument 43-101,
and has reviewed this news release.
Maurice
Tagami, P. Eng, Mineral Processing Consultant, supervised the Metallurgical
Testing Program and is a Qualified Person under National Instrument 43-101,
and has reviewed this news release.
3.
The project has been described previously in Sept 2007, and March 2008 in
Technical Reports filed on SEDAR titled �MINERAL
RESOURCE ESTIMATES FOR SHITURU COPPER DEPOSIT, DEMOCRATIC REPUBLIC OF CONGO�
and �PRELIMINARY ECONOMIC
ASSESSMENT OF THE SHITURU COPPER DEPOSIT, DEMOCRATIC REPUBLIC OF CONGO�.
Data verification for this Mineral Resource estimate follows the methodology
described in those reports. A Technical Report on this Mineral Reserve
estimate will be filed within 45 days of this disclosure.
For further information
contact:
International Barytex
Resources Ltd.
Leo King, President or Alf Hills, CEO
Tel: 604-688-9368
Fax: 604-688-9336
Renmark Financial
Communications Inc.
Jen Power: jpower@renmarkfinancial.com
Dan Symons: dsymons@renmarkfinancial.com
Montreal - Tel: 514-939-3989 / Fax: 514-939-3717
Toronto - Tel: 416-644-2020 / Fax: 416-644-2021
On
behalf of the Board of Directors
INTERNATIONAL BARYTEX
RESOURCES LTD.
�Leo King�
Leo King
President and Director
Some
statements in this news release contain forward-looking information.
These statements address future events and conditions and, as such, involve
known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements to be materially different from
any future results, performance or achievements expressed or implied by the
statements.
The
TSX Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of this news release