Golden Cycle Gold Corporation Reports Completion of the Mine Life Extension Pre-Feasibility Study at Its Joint Venture
06 Agosto 2007 - 3:06PM
PR Newswire (US)
COLORADO SPRINGS, Colo., Aug. 6 /PRNewswire-FirstCall/ -- Golden
Cycle Gold Corporation (NYSE:GCGC) ("Golden Cycle" or the
"Company") is pleased to announce the completion of the Mine Life
Extension Pre-Feasibility Study at the Company's 33% owned joint
venture with AngloGold Ashanti (Colorado) Corporation, the Cripple
Creek & Victor Gold Mining Company ("CC&V"). The successful
completion of the study moved the mine life extension project into
the formal feasibility study process. The final feasibility study
is expected to be completed during fourth quarter 2008. The
pre-feasibility study was an internal study conducted by CC&V
to examine the possibility of extending the mine life at the
Cresson Mine beyond 2012, the current projected end of mining.
CC&V determined that its year end 2006 reportable reserves were
sufficient to fill its valley leach facility to its ultimate
capacity of 300 million tons. The pre-feasibility study is
predicated on realizing positive results from CC&V's
exploration program. During 2006 the reserve addition potential was
corroborated by two independently derived pre-resource (strategic)
resource models based on the existing District data. These models
projected similar results of between 9.97 and 11.1 million troy
ounces of gold contained in 423 to 458 million tons of ore
averaging between 0.021 and 0.022 troy ounce of gold per ton. These
models were used to determine the range of options studied, and if
achieved, will require further extensions of the mine life beyond
the currently contemplated mine life extension project. CC&V's
successful ongoing exploration program is expected to convert
portions of its year end 2006 mineral resources to reportable
reserve status following additional in-fill drilling and
metallurgical work during 2007 and 2008, and produce additional
mineral resources for later follow-up. CC&V studied the
possibility of extending the mine life for various periods and
amounts of gold production. CC&V is generally a low grade gold
ore surface mine, and as such its economics are very sensitive to
variations in ore grade in particular. Throughout the study a gold
price of $550 per troy ounce was applied. The study examined three
scenarios: no mining beyond filling its existing valley leach
facility; mining additional ore of 94 million tons; and mining
additional ore of 212 million tons. The options requiring
additional mining would load ore on a new valley leach facility.
Initial design indicates the new valley leach facility could be
expanded beyond the 212 million ton capacity required by the
maximum case in the study. The options to extend the life of mine
("LOM") would extend the mine life to between 2016 and 2022, with
gold production estimated to end between 2024 and 2030. The two
mine life extension scenarios would be expected to enable the mine
to produce between 1.39 and 3.08 million additional troy ounces of
gold, estimated to add revenues of approximately $764.5 million and
$1.694 billion at a gold bullion price of $550 per troy ounce ($903
million and $2.0 billion at a gold price of $650 per troy ounce).
The LOM estimated incremental project capital cost for the
extension scenarios, is estimated to be between $148 (94 million
ton case) and $281 million (212 million ton case), excluding
current budgeted items in the base case of $29.6 million and
feasibility study and exploration costs of approximately $21
million. The cash costs per troy ounce of gold produced vary from
an estimate of $256 in the base case, $272 in the 94 million ton
case to $292 in the $212 million ton case. The total LOM total
project operating cost is estimated in the study to be $334 per
troy ounce of recoverable gold placed. "The Cripple Creek / Victor
Colorado mining district has a great history of gold production,
more than 23 million recorded ounces of gold to date. We see this
district continuing to produce for many years. This project is an
important part of CC&V's future: it will change CC&V's
operational horizon, announce the Cresson Mine as a continuing long
lived asset, and significantly improve Golden Cycle's projected
returns." said R. Herbert Hampton, Golden Cycle's President and
CEO. Mr. Hampton further stated that he has "great faith in the
exploration potential of the district and can easily visualize
further projects for CC&V." The Mine Life Extension
Pre-Feasibility Study was prepared by CC&V based on estimates,
assumptions and projections that by their nature inherently involve
unknown risks, uncertainties and other factors well beyond
CC&V's and the Company's ability to control or predict. Actual
results and developments may differ materially from those
contemplated by the Mine Life Extension Pre-Feasibility Study, and
the final feasibility study or any decision to expand operations at
CC&V may yield different results. Implementation of any plan to
expand operations is anticipated to require regulatory approval,
permitting and negotiation of certain property matters. Material
factors that could cause actual results to differ materially from
those contemplated by the study include fluctuations in gold
prices; timing of production; accuracy of projections and
production capacities; the effects of weather, operating hazards,
adverse geological conditions and availability of labor, materials
and equipment; changes in governmental laws, regulations, economic
conditions or shifts in political attitudes or stability. Golden
Cycle Gold Corporation is a Colorado corporation organized to
discover, develop and mine precious metal properties. The primary
business of the Company consists of its participation in the
Cripple Creek & Victor Gold Mining Company, a joint venture
with AngloGold Ashanti (Colorado) Corp. The Joint Venture manages
Colorado's major gold producing property, the Cresson mine, located
in the Cripple Creek / Victor gold mining district. Golden Cycle
holds gold prospects in Humboldt County, Nevada, "Table Top", and
the "Sagittarius Alpha Realty" group in the Republic of the
Philippines. Golden Cycle Gold Corporation is listed on the
NYSE-Arca Exchange, trading under the symbol "GCGC" (9,769,250
shares outstanding). Except as otherwise stated, information
related to the Cripple Creek & Victor Gold Mining Company has
been derived from reports of the mine operator and is based on
information available to Golden Cycle Gold Corporation as of the
date of this release. This press release includes forward-looking
statements involving known and unknown risks, uncertainties and
other factors that could cause actual results to vary materially
from projected results. These include but are not limited to
changing commodity prices; differences in ore grades and tons mined
from those anticipated; successful mining and milling at currently
planned rates; changes in project parameters as plans continue to
be refined; continued compliance with environmental permits; the
results of current exploration activities and new exploration
opportunities; the conclusion of feasibility studies currently
under way; and the political and economic risks associated with
foreign operations. Please refer to a discussion of these and other
factors in Golden Cycle Gold Corporation's 10-K, 10-Q and other
Securities and Exchange Commission filings which will be provided
to you upon request. You should not place undue reliance on forward
looking statements. We undertake no obligation to update any
forward-looking statement. DATASOURCE: Golden Cycle Gold
Corporation CONTACT: R. Herbert Hampton, President & CEO of
Golden Cycle Gold Corporation, +1-719-471-9013
Copyright