March 1 (SeeNews) - Canada's Euro Sun Mining said on Monday that it estimates a robust gold and copper output at its Rovina Valley gold and copper project in Romania and total initial capital expenditures (CAPEX) of $399 million (329 million euro), following positive results of the definitive feasibility study.
The feasibility study uncovered a potential average annual gold equivalent production of 146,000 ounces over the first ten years, consisting of 106,000 ounces of gold and 19 million pounds of copper per annum, Euro Sun said in a press release.
The project's pre-tax net present value is seen at $447 million, the company added.
"The 2021 Definitive Feasibility Study highlights a positive economic project for our initial phase of development at the Rovina Valley Project. An expanded life of mine to almost 17 years coupled with a conservative metal price model has delivered an net present value almost 100% higher than the preliminary economic assessment of 2019," Euro Sun Mining CEO Scot Moore said.
"The study delivers a much higher degree of confidence in both the capital required to build the project and the operating costs, even when utilizing higher cost dry stacking. At spot copper and gold prices, the NPV almost doubles again highlighting the enormous leverage of the Rovina Valley Project."
The Rovina Valley project in the Hunedoara county in western – central Romania consists of three deposits - Rovina to the north, Colnic Central and the Ciresata deposit to the south.
The study only incorporates the Rovina and the Colnic deposits while the Ciresata deposit can be brought into the project for development later.
The Rovina exploration licence is held by Samax Romania, a wholly owned subsidiary of Toronto Stock Exchange-listed Euro Sun Mining.
Since November 2018, Euro Sun Mining has an exploitation permit and mining licence for the project with a renewable 20-year validity.
($= 0.8249 euro)