VANCOUVER, BRITISH COLUMBIA (TSX VENTURE: IBX) is pleased to
announce summary results from the Preliminary Assessment (Scoping
study) on the Shituru project located near Likasi, Katanga Province
in the Democratic Republic of Congo (DRC).
Bateman Metals & Mining of Johannesburg is the lead
consultant in preparing the study including process plant design
and capital cost estimates. Bateman is currently involved in the
construction of a number of substantial mining projects in the DRC.
The Mineral Resource estimate(1) disclosed by the company in July
2007 forms the basis of the study and was prepared by SRK of
Johannesburg. SRK also prepared the geotechnical, hydrology, mine
design and environmental aspects of the study. SGS Lakefield of
Ontario carried out the metallurgical testing that was used as the
basis for the process plant design and the estimation of
metallurgical recoveries.
The Preliminary Assessment considers the Indicated and Inferred
Mineral Resources in its production schedule. It should be noted
that Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
A summary table follows:
--------------------------------------------------------------
Shituru Copper Project - 100% Equity Basis
--------------------------------------------------------------
Mill Throughput - Mt/a 1.0
--------------------------------------------------------------
Avg Annual Copper Production - tonnes 34,000
--------------------------------------------------------------
Mine Life - years 9
--------------------------------------------------------------
Avg Annual Cash Cost - USD/lb Copper(2) 0.57
--------------------------------------------------------------
Capital Cost M USD - Initial 228
--------------------------------------------------------------
Capital Cost M USD - Life of Mine 258
--------------------------------------------------------------
Strip Ratio - Life-of-Mine 3.9
--------------------------------------------------------------
(1) See corporate website, www.barytex.com for July Mineral
Resource estimate and links to the associated Technical
Report filed on Sedar.
(2) Excludes Royalties.
The Scoping study estimates an initial capital cost of 228 M USD
with production commencing in 2011. The plant is expected to
process 1 Million tonnes annually at an average grade of 4.1%
Copper producing about 34,000 tonnes of LME grade copper per annum
with higher production in the early years of operation.
The Capital Cost estimate is based on 2007 costs with an overall
contingency of 11% and reflects current experience with
constructing mining development projects in the DRC.
As noted previously the Shituru deposit is interpreted as
consisting of low and high acid-consuming ore, with the high
acid-consuming ore occurring principally at depth. This ore
distribution is significant as it allows a simpler process plant
with lower operating costs to be initially constructed and an
expansion in year 5 of the mine life.
The scoping study assumes low acid-consuming ore is processed
using Whole Ore Leaching with the high acid-consuming ore processed
using Flotation Concentrate Leaching. Whole Ore Leaching is used
exclusively until late in the mine life when a flotation plant is
constructed and Flotation Concentrate Leaching is used from
time-to-time on a batch basis to accommodate increasing amounts of
high acid-consuming ore as the open pit deepens. Whole Ore Leaching
consists of agitated tank acid leach and standard SX-EW technology
while Flotation Concentrate Leach consists of a flotation circuit
producing a copper-oxide concentrate which is then leached through
the plant built during the initial construction period.
Metallurgical recovery is estimated to average 84% over the mine
life with better recoveries achieved in the early years. Mine
operating costs are estimated at 1.27 USD/t-mined for waste and
1.62 USD/t-mined for millfeed; Processing costs are estimated at
23.90 USD/t-milled for low acid-consuming ore using Whole Ore Leach
and 40.26 USD/t-milled for high acid-consuming ore processed by
Flotation Concentrate Leach. G&A costs are estimated at 6.93
USD/t-milled.
A Summary table of key production statistics, based on a mine
design assuming the above and a copper price of 1.50 USD/lb, is
provided below.
---------------------------------------------------------------------------
Total
Year 1 2 3 4 5 6 7 8 9 / Avg
---------------------------------------------------------------------------
Tonnes Mined - Mt 4.5 4.5 4.5 4.3 4.3 4.3 4.2 2.9 1.0 34.6
---------------------------------------------------------------------------
Tonnes(3) Milled - Mt 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.9 8.9
---------------------------------------------------------------------------
% of Millfeed which is
Inferred Resource(4) 21 11 7 5 4 3 7 24 100 19
---------------------------------------------------------------------------
Grade - %Cu 3.9 4.4 4.5 4.5 4.4 4.4 4.1 3.6 3.0 4.1
---------------------------------------------------------------------------
Copper Produced - kt 33 37 38 38 37 37 34 30 23 307 / 34
---------------------------------------------------------------------------
- Mlb 73 82 84 84 82 81 74 66 50 676 / 76
---------------------------------------------------------------------------
Cash Cost USD/lb(5) 0.57 0.52 0.51 0.51 0.52 0.54 0.61 0.67 0.78 0.57
---------------------------------------------------------------------------
(3) Production schedule 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 Preliminary Assessment will be
realized.
(4) Average grade of the Inferred Resource included in the Preliminary
Assessment is 2.90% Copper.
(5) Excludes Royalties.
Summary economics based on a 100% all equity basis are provided
in the table below(6,7). The Company has the option to earn a 65%
indirect interest in the Shituru Project by achievement of project
milestones and payments as described in previous releases.
------------------------------------------------------------------------
Copper Price USD/lb 1.50 2.00 3.00
------------------------------------------------------------------------
Payback from start of commercial production (years) 3.8 2.5 1.5
------------------------------------------------------------------------
IRR - % 12 24 42
------------------------------------------------------------------------
NPV - 0% - M USD 161 388 844
------------------------------------------------------------------------
NPV - 8% - M USD 34 158 405
------------------------------------------------------------------------
NPV - 10% - M USD 15 124 338
------------------------------------------------------------------------
(6) Includes estimates of taxes and royalties
(7) A NI 43-101 Technical Report for the Shituru Preliminary Assessment
will be filed on SEDAR within 45 days of the date of this news
release.
President Leo King states, "The scoping study results allow us
to assess the potential of this high grade copper deposit. We are
particularly pleased with the low cash costs and substantial copper
production in the initial years of operation.
As we move forward with the Feasibility Study we have identified
a number of areas that we believe, with further refinement, will
improve the project with respect to cost, schedule and metal
production. In particular the improved geologic understanding of
the deposit, especially that of the near surface, high grade, low
acid-consuming ore should have a positive impact on both metal
production and operating costs in the early years of mining. SRK is
currently updating the Mineral Resource and we look forward to
releasing the updated estimate when it is completed.
The processing plant designed by Bateman for the scoping study
is simple and the mine strip ratio at 3.9:1 is modest. This,
combined with the minimal infrastructure requirements, reduces the
operational risk of the project substantially. We are confident
that Bateman's current experience in building mines in the DRC will
prove valuable in assessing the success of this project.
These results demonstrate that small mines with high grades can
generate substantial production at low cash costs. We believe the
study demonstrates that Shituru has the potential to be a
successful producing mine and look forward to reporting on our
progress as we complete the Feasibility Study in Q-3, 2008."
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.
Bruno Barde, P.Geo, Exploration Manager for the Company,
supervised the exploration program and is a Qualified Person as
defined under National Instrument 43-101.
Maurice Tagami P.Eng, Mineral Processing Consultant, supervised
the Metallurgical Testing Program, and is a Qualified Person as
defined by National Instrument NI 43-101.
Alfred Hills, P.Eng, Chief Executive Officer for the Company,
has supervised SRK and Bateman Minerals and Metals in the
preparation of the Preliminary Assessment and is a Qualified Person
as defined by National Instrument NI 43-101.
On behalf of the Board of Directors
INTERNATIONAL BARYTEX RESOURCES LTD.
Leo King, President and Director
Some statements in this news release contain forward-looking
information. These statements include, but are not limited to,
statements with respect to the completion and timing of preliminary
assessments. 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.
Such factors include, among others, the ability to complete
contemplated and the timing of Preliminary Assessments.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news
release.
Contacts: International Barytex Resources Ltd. Leo King
President (604) 688-9368 International Barytex Resources Ltd. Ivan
Bebek Manager, Investor Relations (604) 688-9368 (604) 688-9336
(FAX) Email: ibx@barytex.com Website: www.barytex.com
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