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Continental Precious Minerals Inc.
Continental Precious Minerals Inc. (TSX:CZQ) is a multi-mineral exploration company with multiple interests and exploration licences in Sweden. Since March 2005, Continental’s primary goal has been to advance its Swedish assets. To date, Continental’s exploration program has primarily focused on the Viken MMS licence, where it has defined a NI 43-101 compliant resource and completed a positive preliminary economic assessment (PEA).
The PEA was completed by P&E Mining Consultants Inc.(“P&E”), with EHA Engineering Ltd. (“EHA”) having completed the metallurgical component of the study. P&E concludes that the Viken MMS project has economic potential as an open pit mine for uranium, vanadium and molybdenum. The base case contemplates an average life-of-mine waste to mineralized shale strip ratio of 0.5:1, a 40,000 tonnes per day mill feed rate and a 16 year mine life. The PEA concludes that the estimated undiscounted cash flow is US$4.618 billion after capital and operating costs.
The net present value of such amount, using a discount rate of 6.5% (base case), is US$1.039 billion using base case metal prices of US$65.3/pound U3O8, US$15/pound vanadium and US$15/pound molybdenum. Only nine million indicated and 214 million inferred tonnes of the diluted and recovered potentially mineable portion of the Viken licence resource above an NSR cut off grade of US$60 per tonne were used in the base case. At an NSR cut off grade of US$7.50 per tonne, Viken MMS has an inferred resource estimate of 2.831 billion tonnes containing 1 billion pounds of uranium oxide (0.33 lbs/ton), 2 billion pounds of nickel (0.65 lbs/ton), 17 billion pounds of vanadium pentoxide (5.36 lbs/ton) and 1.5 billion pounds of molybdenum (0.49 lbs/ton).
The resource estimate also includes an indicated resource of 24 million tonnes containing 10 million pounds of uranium oxide (0.38 lbs/ton), 17 million pounds of nickel (0.63 lbs/ton), 15 million pounds of molybdenum (0.56 lbs/ton) and 162 million pounds of vanadium pentoxide (6.25 lbs/ton).
Contact Us
36 Toronto Street
Suite 1000
Toronto, Ontario
M5C 2C5
Rana Vig
Vice Chairman
647-476-9226 ext 6
rana@czqminerals.com
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