Page 27 - Minesite 2011

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A leading Australian nickel producer
An emerging multi-commodity growth company
Established track record of profits and dividends
Fully funded for growth
www.mincor.com.au
At time of publication, development activities at DeGrussa
were well advanced with mining of oxide gold material from
the open pit underway, the underground decline – named after
the company’s Technical Director, John Evans – progressing
well and some 300 personnel on site, set to ramp up further to
around 400.
DeGrussa is expected to be an exceptionally robust and
high-margin project, with forecast life-of-mine revenue (from
the June 2011 definitive feasibility study) of $4.2 billion and a
pre-tax project operating cash flow of $2.4 billion over its initial
mine life of seven-plus years. This is based on the four lenses of
high-grade VMS copper-gold mineralisation discovered to date.
Total pre-production capital is estimated at $384 million, with
approximately $300 million planned to be incurred during the
financial year ending 30 June 2012.
In its first three years of operations, the mine will deliver
around 77,000 tonnes a year of payable copper metal and
36,000 ounces of gold, generating project revenue averaging
$730 million for the first three years of operations and pre-tax
project net operating cash flow averaging $440 million a year.
FIRST ORE STRUCK AT
THE DEGRUSSA OPEN
PIT ON 1 JULY 2011
ROCKBOLTING AT
THE ENTRANCE TO THE
UNDERGROUND PORTAL