RoM will be processed at conventional carbon-in-leach, modular plants. Initially 150,000 tonnes per month of RoM is crushed, screened and ball milled; and later on 360,000 tonnes per month of ROM is crushed and SAG milled. The downstream circuit includes gravity concentration, intensive cyanidation and carbon in leach. The life of mine weighted average total operating cost is estimated to be in the range of $750 per ounce (before royalty and taxes). The initial capital cost for the plant is $133.9 million.The total initial capital cost is $ 238.3 million. The Net Present Value (“NPV”) is based on a gold price of $1,600 per ounce and a US$:South African Rand exchange of 8.0. The NPV on a pre-tax basis at a 5% discount rate is $392 million; and at a discount rate of 10% it is $268 million. The NPV on an after tax basis at a discount rate of 5% is 288 million; and at a discount rate of 10% it is $196 million. The most sensitive cost parameter is the plant operating cost, which is most affected by the cost of power. All costs used in the PEA were based either on quotes obtained from suppliers or benchmarking against current similar African operations. A high level environmental and sensitivity review for purposes of the PEA has not identified any unusual potential remediation measures or fatal flaws. According to Joseph K Kahama, Chairman and Chief Operating Officer (Tanzania), "The PEA provides a development framework that we believe will be greatly enhanced by our recent exploration successes at Buckreef, results from which remain to be included in the PEA. Based on our exploration work to date, we see considerable growth potential on the resource side, strong potential for improved grades and thicknesses at depth, and the possibility of an underground mining operation to compliment surface operations."
Mineral deposits that are not mineral reserves do not have demonstrated economic viability.Qualified Persons Venmyn Independent Projects (Pty) Limited was appointed by Tanzanian Royalty to independently co-ordinate a group of specialist consultants conducting the PEA, to independently review the study results and to compile the 43-101 compliant Independent Technical Report on the PEA. Specialist consultants contributing to the PEA are African Geo-Environmental Services (Pty) Limited, EnviroSim Consulting (Pty) Limited, Epoch Resources (Pty) Limited, Sound Mining Solution (Pty) Limited and K’Enyuka (Pty) Limited. The Qualified Persons are F. Harper B.Sc Hons (Geol), Pr Sci Nat; MGSSA and A.N.Clay M.Sc (Geol), M.Sc (Min. Eng), Dip.Bus.M, Pr Sci Nat, MSAIMM, FAusIMM, FGSSA, IOD, SPE, CIMMP, MPMI, both are full-time employees of Venmyn Projects. Respectfully Submitted, Joseph KahamaChairman and Chief Operating Officer (Tanzania) For further information, please contact Investor Relations at 1-800-811-3855Visit our website: www.TanzanianRoyalty.com The Toronto Stock Exchange and NYSE Amex Equities have not reviewed and do not accept responsibility for the adequacy or accuracy of this release Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. We use certain terms on this news release, such as “reserves”, “resources”, “geologic resources”, “proven”, “probable”, "measured", "indicated", or "inferred" which may not be consistent with the reserve definitions established by the SEC. U.S. Investors are urged to consider closely the disclosure in our SEC filings. You can review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml This news release contains certain forward-looking statements and forward-looking information. All statements, other than statements of historical fact, included herein are forward-looking statements and forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time-to-time with the British Columbia, Alberta and Ontario provincial securities regulatory authorities.
Certain information presented in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on numerous assumptions, and involve known and unknown risks, uncertainties and other factors, including risks inherent in mineral exploration and development, which may cause the actual results, performance, or achievements of the Company to be materially different from any projected future results, performance, or achievements expressed or implied by such forward-looking statements. Investors are referred to our description of the risk factors affecting the Company, as contained in our SEC filings, including our annual report on Form 20-F and Registration Statement on Form F-10, as amended, for more information concerning these risks, uncertainties, and other factors.