Toronto, Ontario – April 30th, 2019: Toachi Mining Inc., (“Toachi” or the “Company”) (TSX-V:TIM) (OTCQB:TIMGF) is pleased to announce the positive results of the independent Preliminary Economic Assessment (“PEA”) f or the La Mina VMS Project (“Project”) located in the Province of Cotopaxi, Ecuador. The PEA was prepared pursuant to National Instrument 43-101 (“NI 43-101”) and has an effective date of March 30th, 2019. A NI 43-101 technical report summarizing the PEA (the “Technical Report”) will be available on SEDAR no later than June 20th, 2019. All references to currencies herein are in U.S. dollars.
The underground mine produces diluted polymetallic mine material for processing at an 800 tonne per day capacity on-site flotation mill. The mill products (i.e. a Cu/Pb concentrate and a Zn concentrate) are sold to smelters in Asia.
The mine plan encompasses 2 million tonnes of potentially mineable mineralization, average head grade 10 Au Eq g/t.
The Project would operate for 7.1 years with a Net Present Value (“NPV”) (5%) of $52 million after tax, an Internal Rate of Return (“IRR”) of 24% after tax, and an after tax payback period of 3.5 years.
The life of mine (LOM) Net Smelter Return (NSR) is $402M which equates to 318,000 troy oz Eq. based on 2 Mt milled and the projected $1,264/ troy oz Au gold price. The NSR does not include any revenue from lead contained in the Cu/Pb and Zn concentrates.
The LOM net direct cash costs (C1) amount to $74/t milled. The Project’s C1 cash cost, on an equivalent troy oz Au/t milled basis, is $470/troy oz Eq Au. The All-In Sustaining Cost (AISC) is $101/t milled. The Project’s AISC, on an equivalent troy oz Au/t milled basis, is $640/troy oz Eq Au.
The results of metallurgical testing completed to date indicate that there are opportunities for improvement in the project economics.
The Company reports local community support for the Project with few dissenters and is engaging local communities. Ecuador has a regulatory regime for the social and environmental assessment and permitting of mines.
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