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| | March 10, 2008
Western Troy Announces Positive Results of MacLeod Lake Preliminary Assessment (Scoping Study)
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| | TORONTO, ONTARIO--(Marketwire - March 10, 2008) - Western Troy Capital Resources Inc. (TSX VENTURE:WRY - News; "Western Troy") today announced it has received the results of a Preliminary Assessment on its MacLeod Lake Molybdenum Copper Project from Scott Wilson Roscoe Postle Associates (Scott Wilson RPA) of Toronto. Using a molybdenum price of US$17.00 per pound and a copper price of US$2.25 per pound, the study indicates a surface mining operation on the Main Zone of the MacLeod Lake Project will generate a pre-tax net present value (NPV using a 10% discount Rate) of C$156 million and a pre-tax internal rate of return (IRR) of 32%. An NI43-101 Compliant Technical Report will be available within 45 days of this release.
Western Troy's President, Rex Loesby, commented, "We are extremely happy with the work the Scott Wilson RPA has done. The study indicates a healthy project at a molybdenum price that is 50 percent of the current market price and a copper price that is 60 percent of the current market price. At current metals prices (US$34 per pound for molybdenum and US$3.80 per pound for copper), the project would have an NPV of over C$700 million and an IRR of 81%. With a permitting period estimated by Scott Wilson RPA of less than 18 months, Western Troy could be ready for mine development and construction in early 2010."
Scott Wilson RPA's estimate of the Mineral Resources for the Main Zone of MacLeod Lake Project, contained within an optimized open pit outline, is summarized in the following table.
MINERAL RESOURCES
Western Troy Capital Resources Inc. - MacLeod Lake Project
Tonnes Cu Mo Ag Au NSR
Resource Class ('000s) (%) (%) (g/t) (g/t) (C$/t)
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Indicated 18,180 0.60 0.094 4.48 0.06 68.79
Inferred 1,862 0.35 0.078 3.61 0.04 51.37
Notes:
1. CIM definitions were followed for Mineral Resources.
2. Mineral Resources are estimated at a NSR cutoff value of C$16 per
tonne, representing the pit discard cut-off value.
3. Mineral Resources are estimated using average long-term prices of US$2.25
per pound copper, US$25 per pound molybdenum, and a US$/C$ exchange rate
of US$1.00 equals C$1.11
4. A selective mining unit of 10 metres by 10 metres by 5 metres was used.
5. Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
The Preliminary Assessment based on the above Mineral Resource estimate includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the preliminary assessment will be realized.
At the anticipated open pit production rate of 6,000 tonnes per day or 2.1 million tonnes per year, the Project will provide for a mine life of approximately nine years. Life of mine metal production is forecast to be 217 million pounds of copper, 32 million pounds of molybdenum, 800,000 ounces of silver and 7,000 ounces of gold.
Pre-production capital expenditures are estimated to be C$210 million including:
C$ Millions
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Mine Equipment $ 17
Pre-Production Overburden Removal 8
Mill Equipment 37
Buildings 24
Access Road 14
Power Line 9
Other Infrastructure 5
Engineering & Indirects 54
Contingency (25%) 42
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Total Initial Capital $ 210
The total operating cost, including mining, processing and general/administration, is estimated to be $24 per tonne of ore milled. The open pit will be mined in two phases. Phase 1 will include mining without disturbing the adjacent MacLeod Lake, for a total of 13 million tonnes (Years 1 to 6). Phase 2 involves extending the pit to the east and requires draining a portion of the lake. Phase 2 will total 4.2 million tonnes (Years 7 to 8).
Scott Wilson RPA Qualified Persons responsible for the Preliminary Assessment are Normand Lecuyer, P.Eng., Principal Mining Engineer, Reno Pressacco, M. Sc(A), P.Geo., Associate Consulting Geologist, Barry Cook, M.Sc., P.Eng. Associate Consulting Geologist, Kevin Scott, P.Eng., Consulting Metallurgist, and Jason Cox, P.Eng., Senior Mining Engineer.
About Western Troy
Western Troy Capital Resources Inc. is a mineral exploration company. Its 100%-owned MacLeod Lake Property hosts a well defined Main Zone of mineralization as outlined by extensive drilling. In addition, a South Zone resource and several IP anomalies of potential interest have been identified but were not considered in Scott Wilson RPA's Preliminary Assessment. In December of 2007, Western Troy received an independent Technical Report consistent with National Instrument 43-101 on its MacLeod Lake Property located about 275 km north of Chibougamau, Quebec. The report has been filed on SEDAR and is available at www.SEDAR.com and on Western Troy's website, www.WesternTroy.com. The shares of Western Troy trade on the TSX Venture Exchange under the symbol WRY, with 19,550,970 shares outstanding.
Statements in this release that are forward-looking reflect Western Troy's current views and expectations with respect to its performance, business, and future events. Such statements are subject to various risks and assumptions, some, but not necessarily all, are disclosed elsewhere in the Company's periodic filings with Canadian securities regulators. Such statements and information contained herein represent management's best judgment as of the date hereof based on information currently available; however actual results and events may vary significantly. The Company does not assume the obligation to update any forward-looking statement.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.
Contact:
Rex E. Loesby, P. E.
Western Troy Capital Resources
President
(416) 929-3268
Email: RexLoesby@aol.com
Website: www.westerntroy.com |
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