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Tri Origin Exploration Ltd

Publié le 22 mars 2012

AFFILIATE ANNOUNCES APPROVAL FOR DEVELOPMENT OF WOODLAWN RETREATMENT PROJECT

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Mots clés associés :   Canada | Copper | Zinc |

March 22, 2012

 

 

AFFILIATE ANNOUNCES BOARD APPROVAL FOR THE DEVELOPMENT OF WOODLAWN TAILINGS RETREATMENT PROJECT

 

Tri Origin Exploration Ltd. (TSX-V: TOE) (?Tri Origin? or the ?Company?) is pleased to bring attention to the important news released by its affiliate, TriAusMin Limited, stating that its Board has approved the development of TriAusMin?s Woodlawn Tailings Re-treatment project (the ?WRP?) located 200 kilometres southwest of Sydney, NSW, Australia.  Tri Origin believes that its 29 million share investment in TriAusMin will appreciate and add value for Tri Origin shareholders as TriAusMin moves towards its near-term goal of achieving base and precious metal production at Woodlawn.

 

TriAusMin?s news release of March 22, 2012 entitled ?TriAusMin Announces Go Ahead for Woodlawn Retreatment Project? follows management and board review of a Front-End Engineering Design (FEED) study of March 19, 2012 completed by GR Engineering Services Limited of Belmont, West Australia and an in-house economic evaluation and Business Case.  The WRP is planned to  process 11.2 million tonnes (Mt) of tailings material at a proposed rate of 1.5 Mt per annum to produce separate zinc, lead and copper concentrates containing by-product gold and silver.  WRP is forecast to generate A$199 million in net cash before tax with an Internal Rate of Return (IRR) of 33% over its 7.5 year mine life based on a development capital cost of approximately $A92.8 million. 

 

TriAusMin?s Board approved the development of the WRP subject to securing satisfactory financing arrangements.  Subject to sourcing project funding and statutory approvals, TriAusMin believes the WRP could achieve first commercial production early in 2014.

 

The Base Case Scenario shown below is based on forward curve metal prices and foreign exchange rates as at February 27, 2012.  Currency is expressed in Australian dollars unless otherwise stated:

 

Mineral Reserves(a):       11.2 million tonnes at 2.2% zinc, 1.3% lead, 0.5% copper, 31 grams per tonne silver, 0.3 grams per tonne gold

 

Mining:                         4,300 tonnes per day utilising hydraulic mining

Mine Life:                      7.5 years

Processing:                  Conventional milling and flotation to produce copper, zinc, and lead concentrates containing silver and gold

Development Capital:    $92.8 million including a $5.6 million contingency

Operating Costs:           $22 per tonne processed

Total NSR Revenue:      $586 million  

Pre-Tax Net Cash Flow: $199 million

Pre-Tax NPV (10%):       $81 million

Capital Payback:           3.5 years from production start-up

C1 Unit Cost:                $0.12 per pound payable Zn (post by-product credits)

Pre-Tax Project IRR:      33%

 

The former Woodlawn Mine operated from 1978 to 1998 and over this period it treated 13.8 Mt of ore grading 9.1% zinc, 3.6% lead, 1.6% copper, 74 grams per tonne of silver and 0.52 grams per tonne of gold. The tailing dams that remain from the treatment of this ore are the subject of the WRP and contain economic levels of metals that warrant reprocessing utilising modern technology.  Hydraulic mining will be used to recover the tailings in a slurry and standard sulphide flotation processes using modern fine-grinding techniques to enhance metallurgical recoveries will be used to produce the separate copper, lead and zinc concentrates with by-product silver and gold.

The full release can be accessed from TriAusMin?s website www.triausmin.com or SEDAR www.sedar.com.

 

Tri Origin holds a substantial investment of 29.4 million ordinary shares in TriAusMin and remains its largest shareholder after initially listing its subsidiary on the Australian Securities Exchange and more recently, on the Toronto Stock Exchange. In addition to Tri Origin?s gold exploration programs in the Canadian Shield, it is Tri Origin?s belief that this investment will appreciate and add value for Tri Origin shareholders as TriAusMin works towards its near-term goal of achieving base and precious metal production at Woodlawn.

 

For further information, please refer to the Tri Origin?s website www.triorigin.com  or SEDAR www.sedar.com or contact:

 

Dr. Robert Valliant, President

Tri Origin Exploration Ltd.

Tel: (905) 727-1779

E-mail: invest@triorigin.com

 

Tri Origin Exploration Ltd. is publicly listed on the TSX Venture Exchange under the trading symbol TOE. Tri Origin is a leading Canadian exploration company with gold and base metal projects in Canada.  Tri Origin has leveraged exposure to mineral discoveries in Australia through its equity interest in TriAusMin Limited which holds gold and base metal resource-based assets in New South Wales.

 

(a)    The information in this news release that relates to Mineral Resources or Ore Reserves associated with the Woodlawn Retreatment Project is based on information compiled by qualified person, Mr. Richard Lambert, P.E. a professional engineer and Registered Member of SME. Mr. Richard Lambert is Principal Mining Engineer and Executive Vice President of Roscoe Postle Associates Inc.  He is independent of TriAusMin applying the test set out in Section 1.4 of NI 43-101. He has sufficient experience relevant to the style of mineralization and type of deposit under consideration, and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the ?Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves? (the JORC Code) and by reason of his education, affiliation with a professional association (as defined in NI43-101) and past relevant work experience, fulfils the requirements to be a "qualified person" for the purposes of NI43-101.

 

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Cours de l'or et de l'argent pour les pays mentionnés : Canada | Tous

Tri Origin Exploration Ltd

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ISIN : CA89557L1031
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Tri Origin est une société d’exploration minière de cobalt et de nickel basée au Canada.

Tri Origin est en développement de projets de cobalt, de nickel, d'argent, de cuivre, d'or, de plomb et de zinc en Australie, et détient divers projets d'exploration au Canada et en Australie.

Ses principaux projets en développement sont WOODLAWN UNDERGROUND et WOODLAWN RETREATMENT en Australie et ses principaux projets en exploration sont OVERFLOW, CALARIE, LEWIS PONDS et WOODLAWN MINING DISTRICT en Australie et RED LAKE EXTENSION / CONFEDERATION, BURNTBUSH, COCHENOUR et CITADEL CUSTOM GOLD (SURLUGA) au Canada.

Tri Origin est cotée au Canada et en Allemagne. Sa capitalisation boursière aujourd'hui est 20,9 millions CA$ (16,8 millions US$, 13,9 millions €).

La valeur de son action a atteint son plus haut niveau récent le 05 avril 2007 à 1,39 CA$, et son plus bas niveau récent le 18 mars 2020 à 0,01 CA$.

Tri Origin possède 99 370 000 actions en circulation.

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