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Metminco Limited (MNC)


Monday 30 October, 2017

Metminco Limited

Miraflores Feasibility Study Release

RNS Number : 9351U
Metminco Limited
30 October 2017


30 October 2017




Miraflores Feasibility Study



This announcement is an abridged version of the full announcement, which is available in the associated PDF document. Click on, or paste the following link into your web browser, to view the associated PDF document:


Metminco Limited (ASX: MNC, AIM: MNC) ("Metminco" or the "Company") is pleased to announce the details of the feasibility study technical findings for the development of its Miraflores Gold Project in Quinchia, Department of Risaralda, Colombia (the "Project").



·   Maiden Ore Reserve Estimate; Metminco has declared a maiden NI 43-101 and JORC 2012-compliant Ore Reserve for Miraflores of 4.326Mt @ 3.29g/t Au for 456,000 contained ounces of gold.


Ore Reserve Estimate - Miraflores Gold Project (October 2017, 100% basis)

Reserve Classification

Tonnes (t)

Gold (g/t)

Silver (g/t)

Contained Metal (Koz Au)

Contained Metal (Koz Ag)













Proved + Probable






Planned dilution






Total Ore Reserve






Source: Ausenco, 2017

·     The Company announced in September 2017 that it had received approval from the Corporacion Autonoma Del Risaralda (CARDER), the environmental agency in the Department of Risaralda, Colombia, to construct up to 2,000 metres of underground development under the Company's existing Plan De Manejo Ambiental (PMA). The Company is assessing options for funding the underground development.


·      With the granting of this permit the Company now has the option to commence underground development of the mine which Metminco believes would provide valuable technical details of the orebody ahead of a decision to proceed with construction of the plant and infrastructure. The permit provides for placement of waste on surface and allows for surface discharge of water from the mine.


·     The processing plant has been designed to operate at a treatment rate of 1,300tpd. Detailed metallurgical testwork has demonstrated recoveries of 92% and 60% for gold and silver respectively.


·      The After Tax NPV (8% DR), IRR and Payback for the base case are US$72.3 million, 25% and 3.6 years respectively (NPV at 5% DR is US$96.1 million)


·      It is envisaged that the project will be constructed over an 18 month period from the commencement of detailed engineering (1 March 2018 commencement date). The early definition of major equipment such as mills, crushers, thickening and filtering equipment is critical for maintaining the project timeline and will be undertaken in a 3 to 4 month front end engineering design (FEED) phase prior to project full commencement. Commencement of site works is subject to EIA approval.



Mr William Howe, Managing Director, said: "The outcome of the feasibility study is testament to the professionalism and dedication of the feasibility study team. The extensive experience of the individuals is demonstrated by the innovative thinking that has culminated in a low cost, fit for purpose mining and processing project."



William Howe

Managing Director


Click on, or paste the following link into your web browser, to view the associated PDF document:





For further information, please contact:




Brian Jones


Office:  +61 (0) 2 9460 1856







RFC Ambrian






Will Souter / Alena Broesder


Office:  +61 (0) 2 9250 0000




United Kingdom



Charlie Cryer


Office:  +44 (0) 20 3440 6800







SP Angel Corporate Finance LLP (UK)



Ewan Leggat


Office:  +44 (0) 20 3470 0470








United Kingdom



Gordon Poole / Nick Hennis


Office:  + 44 (0) 20 3757 4997




Media + Capital Partners






Luke Forrestal


Office: +61 (0) 411 479 144


Competent Persons Statement

The information provided in this announcement that relates to Mineral Reserves of the Miraflores Gold Project is based on information compiled by Mr Boris Caro.  Mr Caro, a Qualified Person for JORC (2012 Edition) compliant statements, reviewed the technical information presented in this document.

Mr Caro has sufficient experience that is relevant to the style of mineralisation and type of mineral deposit under consideration, and to the activity which was undertaken, to make the statements found in this report in the form and context in which they appear.  Mr Caro has consented to be named in this announcement and inclusion of information attributed to him in the form and context in which it appears herein.

Market Abuse Regulation (MAR) Disclosure

The information communicated in this announcement includes inside information for the purposes of Article 7 of Regulation 596/2014.


Forward Looking Statement

All statements other than statements of historical fact included in this announcement including, without limitation, statements regarding future plans and objectives of Metminco are forward-looking statements.  When used in this announcement, forward-looking statements can be identified by words such as ''anticipate", "believe", "could", "estimate", "expect", "future", "intend", "may", "opportunity", "plan", "potential", "project", "seek", "will" and other similar words that involve risks and uncertainties.


These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place.  Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, its directors and management of Metminco that could cause Metminco's actual results to differ materially from the results expressed or anticipated in these statements.


The Company cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Metminco does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by applicable law and stock exchange listing

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