Tepal Project Overview
Since acquiring the Tepal project in late 2009, ValOro has carried out aggressive exploration, resource expansion, and infill drilling programs through to the end of 2011, totaling 56,810 metres of drilling in 292 holes. This drilling has allowed the Company to achieve significant increases in resources for both the North and South Zones, to add the resources of the Tizate Zone and to place a high percentage of mineral resources from all of the zones into the Measured and Indicated categories. The largest drilling program, in 2011, consisting of 41,284 metres of drilling in 215 holes, allowed for the most recent resource estimate for the project, which was prepared by Micon International Ltd. The estimate was released in March 2012, and included all project drilling data from the North, South, and Tizate zones up to December 2011.
In March 2013, the Company announced the positive results of a Pre-Feasibility Study ("PFS") prepared by JDS Energy & Mining Inc. The results were based on the March 2012 Micon resource report.
A link to the full March 2013 Tepal PFS report is provided on the website home page.
Significant highlights of the March 2013 PFS and mine plan include:
In January, 2017 ValOro announced the Tepal Preliminary Economic Assessment (“PEA”) using reduced metal prices from the PFS and redesigning the mine plan to a more efficient and smaller throughput of 22,000 tonnes per day. The PEA used US$1,250/Oz. Gold Price and US$2.50/LB Copper Price resulting in a US$169M After-Tax NPV (5%) and 24% IRR. The initial capex was reduced 40% to US$214M:
Up to 2013, the primary focus of the company was to expand the resource and complete both the PFS and permit the project through submittal of a MIA, which was successfully done. During 2017 and 2018, Valoro determined that it was an opportune time to review all of the data collected on the project and develop an exploration plan based on first principles. This has been completed and awaits funding availability for a drill program.