Firestone Files Positive Preliminary Economic Assessment Technical Report
25 April 2013 - 8:46AM
Marketwired Canada
Firestone Ventures Inc. ("Firestone" or the "Corporation") (TSX
VENTURE:FV)(FRANKFURT:F5V) is pleased to announce that the Company has filed a
National Instrument 43-101 compliant Technical Report dated April 24, 2013
entitled "Preliminary Economic Assessment, Torlon Hill Project, Guatemala" under
the Company's profile on SEDAR at www.sedar.com. The Report contains a
comprehensive breakdown of Firestone's Preliminary Economic Assessment ("PEA")
on the 100% owned Torlon Hill Property in Guatemala, the results of which were
announced in a press release on March 6, 2013.
Firestone's President and CEO, Pamela Strand commented, "The operation outlined
by this PEA for the Torlon Hill Project indicates the potential for a fast track
to market approach for our zinc project even at current metal prices. Guatemala
has recently approved two exploitation licences for Tahoe Resources' Escobal
Silver Project and the Mayaniquel Nickel Project and this sets a positive
forecast for production in the country, including our Torlon Project. Our next
steps are to complete the recommended feasibility studies as defined in the PEA
in order to optimize the economics of the Torlon Project."
There are no material differences between the results released on March 6, 2013.
In recognition of the current market conditions the final PEA presents
sensitivities from $0.70 to an upside price of $1.05 per pound of zinc.
PEA Highlights (all currency is $US, after tax)
The PEA Highlights an operation outlines a 6 year mine life producing a total of
303,977 tonnes of zinc concentrate at an average grade of 35% zinc and 71,632
tonnes of silver rich lead concentrate at an average grade 60% lead. The lead
concentrate will also contain 788,990 oz of payable silver. This projects a 45%
IRR, an $18.1 million net present value ("NPV") at an 8% discount rate, a 1.2
year payback with a capex of $26 Million for the Torlon Hill Project. A summary
of the economic findings using $0.80/lb Zn, $0.80/lb Pb and $24/oz Ag includes:
Annual Production - Mill throughput 617,000 tonnes per annum
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Grade 4.96% zinc, 1.76% lead, 10.65
ounce/ton silver
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Estimated Capital Investment $26.2 Million
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Net Present Value (8%) $18.1 Million
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Estimated Operating Expense $42.42/tonne
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Internal Rate of Return 45%
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Recoveries 71.5% zinc, 81.4% lead, 76.8% silver
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Zinc concentrate 35% zinc with 45% payable metal
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Lead concentrate 60% lead (all silver reports to here)
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LOM Production 303,977 t Zn concentrate containing
106,392 t Zn metal
71,632 t Pb concentrate with 42,979 t
Pb metal with 766,800 oz Ag
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Estimated Mine Life 5 years after start up
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Payback 2.2 years
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Project Revenue Commencement Q1/Q2 2015
Financial Sensitivities at Various Metal Prices and Discount Rates
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Change in After-tax NPV at a
sensitivities Metal Price After-tax IRR Discount Rate of
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Zinc Lead Silver 5% 8% 10%
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% US $/lb US $/lbUS $ /oz % US $ Millions
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+5 1.05 1.05 31.50 111 51.4 45.4 42.0
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0 1.00 1.00 30.00 97 45.4(i) 40.1 36.9
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-5 0.95 0.95 28.50 84 39.5 34.6 31.7
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-10 0.90 0.90 27.00 71 33.4 29.1 26.6
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-20 0.80 0.80 24.00 45 21.3 18.1 16.1
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-30 0.70 0.70 21.00 22 9.2 6.9 5.6
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(i) As reported in March 6, 2013 news release.
The PEA is preliminary in nature and includes inferred mineral resources that
are considered too speculative geologically to have economic considerations
applied to them that would enable them to be categorized as mineral reserves.
There is no certainty that the estimates of the PEA will be realized.
Qualified Persons
On behalf of the Company, the technical information in this news release has
also been reviewed and approved by Pamela Strand, P.Geol., President of
Firestone and a Qualified Person in accordance with NI 43-101. For further
information, please see the technical report of the Company, which is available
at www.sedar.com.
About Firestone Ventures Inc.
Firestone is a Canadian-based exploration and development company with
zinc-lead-silver and copper projects in Central America and has been working in
Guatemala since 2004. Our main project is the Torlon Hill Zinc-Lead-Silver
Project in Guatemala. The current NI 43-101 oxide resource (see news release 18
November 2008 on www.sedar.com) is summarized in the following table and the
deposit remains open to expansion. The NI 43-101 resource used a 3% zinc
equivalent cut-off grade and a 35.5% zinc top-cut.
Torlon Deposit Oxide Mineral Resource - as at March 6, 2013
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Zinc Zinc Lead Lead Silver Silver
Tonnes % (lbs)(i) % (lbs)(i) (g/t) (oz)(i)
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Measured and
Indicated 1,891,636 7.32 304,905,997 2.41 100,294,541 14.25 866,663
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Inferred 169,705 4.42 16,502,114 1.96 7,317,680 12.53 68,367
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(i) The total contained metal assumes 100% metal recovery and does not
indicate economic viability
Smithsonite (ZnCO3) is the prevalent zinc mineral at Torlon, occurring as a
replacement to limestone and resulting in high grade mineralization locally
exceeding 40% zinc. Other non-sulphide zinc minerals are relatively rare and
there is no evidence of deleterious zinc-clay minerals.
In addition to Torlon, Firestone also has a large land position covering a
significant portion of the Central Guatemala Zinc District with four drill ready
targets and over fifty zinc mineral occurrences. The land position has excellent
exploration potential and with systematic exploration could develop as the
world's next major zinc district. The common shares of the Company are currently
listed on the TSX Venture Exchange (symbol FV) and the Frankfurt Stock Exchange
(symbol F5V).
Trading Symbol: (TSX VENTURE:FV)(FRANKFURT:F5V)
This news release may contain forward looking statements, being statements which
are not historical facts, including, without limitation, statements regarding
potential mineralization, exploration results, resource or reserve estimates,
anticipated production or results, sales, revenues, costs, "best-efforts"
financings or discussions of future plans and objectives. There can be no
assurance that such statements will prove accurate. Such statements are
necessarily based upon a number of estimates and assumptions that are subject to
numerous risks and uncertainties that could cause actual results and future
events to differ materially from those anticipated or projected. Important
factors that could cause actual results to differ materially from the Company's
expectations are in Company documents filed from time to time with the TSX
Venture Exchange and provincial securities regulators, most of which are
available at www.sedar.com. The Company disclaims any intention or obligation to
revise or update such statements unless required by law.
FOR FURTHER INFORMATION PLEASE CONTACT:
Firestone Ventures Inc.
Pamela Strand, P. Geol.
President
Toll Free: 1-888-221-5588
(780) 428-3476 (FAX)
info@firestoneventures.com
www.firestoneventures.com
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