March 26, 2013
Wallbridge Mining Company Limited (TSX: WM) (FWB: WC7) ("Wallbridge")
today announced that it has received written notice from the
Ministry of Northern Development & Mines that the certified Broken Hammer Project mine closure plan has been considered filed pursuant to section 143.(8) of the Mining Act, R.S.O. 1990, Chapter M14.
"We are very pleased to have received the formal acceptance and filing of the Broken Hammer Mine Closure Plan. The Closure Plan is a major regulatory requirement and this acceptance and filing has brought Wallbridge's management and board of directors a major step closer to the production decision on this project", stated
, President and CEO of Wallbridge. "We will continue our efforts to secure the remaining necessary permits as well as milling and mining contracts, in order to be able to make a final production decision".
Based on the success of a 30,000 tonne bulk sample from the Broken Hammer Zone, excavated and processed in 2011, Wallbridge completed an updated mineral resource estimate and subsequently completed a prefeasibility study in 2012 to determine the economics of the project.
The prefeasibility highlights include:
- Estimated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $8.4 million or $42.60 per tonne of ore
- Estimated total capital costs (CAPEX) for the project of $1.9 million
- Estimated pre-tax Net Present Value (NPV) of $6.0 million using an 8% discount factor
- production rate of 750 tonnes of Cu- PGE ore per day similar to the 2011 bulk sample production rate with an estimated mine life of 12 months
The prefeasibility study recommended that the project proceed to feasibility study. The feasibility study components include securing the necessary permits, a milling contract as well as securing the mining contracts before a final decision is made by Wallbridge's board of directors to proceed with the production of the Broken Hammer project.