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Bard
Ventures Ltd. (TSX-V:CBS - News)(Frankfurt:BVU
- News) ("Bard" or the "Company")
announced today that the complete NI 43-101 positive Preliminary Economic
Assessment ("PEA") on the Lone Pine property covering the
Molybdenum ("Mo"), Copper ("Cu") rich Alaskite
Zone (the "Property") has been filed on SEDAR at www.sedar.com. The Property is
located approximately 15 kilometers north-northwest of Houston, British
Columbia. The independent PEA was prepared by P&E Mining Consultants Inc.
("P&E"), of Brampton, Ontario, with EHA Engineering Ltd.
("EHA") providing the metallurgical components. P&E concludes
that the Property has favourable economic potential
as an open pit mine producing Mo and Cu concentrates.
The
base case economic analysis contemplates an average life-of-mine strip ratio
of 4.98:1 (including the pre-stripping), a 40,000 tonnes
per day mill feed rate and a 12 year mine life. Pre-production capital
expenditures, including contingencies, are estimated to be $435 million. The
Property has an estimated pre-tax net present value ("NPV") of $505
million (at a 5% discount rate) and an internal rate of return (the
"IRR") of 12.4% using a base case Mo price of US$19.00 per pound
and Cu price of US$3.00 per pound. These prices correspond to the approximate
three year trailing average prices of these metals as of December 31, 2010.
Mineral resources that are not mineral reserves do not have demonstrated
economic viability (Please see news release dated 21st January, 2011 for a
complete discussion of the report).
P&E
recommends that the Company advance the project with additional exploration
and delineation drilling, as well as with studies in metallurgical,
geotechnical and environmental matters, with the intention to continue the
project to the feasibility stage.
Highlights
of the PEA
The
mine has been planned as a conventional open-pit mining operation producing
40,000 tonnes per day of mill feed at full
production. The plan anticipates mining 14.0 million tonnes
of ore annually based on a 350 day operating year. Overall pit slopes have
been designed at approximately 50 degrees.
Mining
operations will commence with an initial mill feed grade of 0.035% Mo, which
increases as the mine deepens. In the last 7 years of the mine life, the
average Mo grade will be approximately 0.091%. Cu grades will remain
relatively constant throughout the mine life at approximately 0.034%. The
project is expected to produce 214 million pounds of Mo and 72 million pounds
of Cu over a 12 year mine life. Process recoveries of 85% for Mo and 65% for
Cu were utilized in the cash flow model while the metal payables were 98.5%
for Mo and 85% Cu.
Estimated
mine closure and site rehabilitation cost allowances have been included in
the economic analysis. During mine operation, health and safety and
environmental protection costs, including effluent treatment, have also been
estimated.
The
Property has an ideal location for operations with established infrastructure
including:
-- Highway 16;
-- a natural gas pipeline;
-- a major hydro power
transmission line and transformer sub-station; and
-- is located only 15 kilometers
from the CN rail line in Houston, BC.
Bard
is earning a 100% interest in the Property under the terms of an option
agreement (the "Agreement") (see News Release dated September 15,
2006). All conditions have been met and the Property remains in good standing
with the vendors. The Company will earn its 100% interest in terms of the
Agreement. The Lone Pine exploration work is being conducted under the
supervision of Qualified Person, Rick Kemp, P.Geo.,
Vice-President-Exploration of Bard.
Qualified
Persons and Report
P&E
Mining Consultants Inc. is an internationally recognized, well established
geological and mine engineering consulting firm specializing in the areas of
NI 43-101 geological reports, resource estimates, preliminary economic
analyses of mining projects and preliminary feasibility studies. This PEA was
completed under the direction of Eugene Puritch, P.Eng. and Kirk Rodgers, P.Eng. of P&E who were
responsible for mine design, production scheduling and overall financial
analysis.
Alfred
Hayden, P. Eng. of EHA was responsible for metallurgical process capital and
operating costs.
Each
of the individuals named above is a Qualified Person, as defined in National
Instrument 43-101; is independent of the Company; and is responsible for the
technical disclosure contained in this news release. Eugene Puritch, P.Eng has reviewed and
approved the contents of this press release.
On
behalf of:
Bard
Ventures Ltd.
Eugene
Beukman, President
This
release includes certain statements that may be deemed to be
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. All statements in this release,
other than statements of historical facts, that address future production,
reserve potential, exploration and development activities and events or
developments that the Company expects, are forward-looking statements.
Although management believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance, and actual results or
developments may differ materially from those in the forward-looking
statements. Factors that could cause actual results to differ materially from
those in forward-looking statements include market prices, exploration and
development successes, continued availability of capital and financing, and general
economic, market or business conditions. Please see our public filings at www.sedar.com for further
information.
Neither
the TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Contact:
Contacts:
Bard Ventures Ltd.
Eugene Beukman
President
604 687 2038
604 687 3141 (FAX)
www.bardventures.com
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