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Pacific Booker Minerals Inc. Reiterates 2009 Feasibility Study Results
Vancouver BC, January 16, 2013: A positive Feasibility Study, as defined
by National Instrument 43-101, was released by the Company for its 100% owned
Morrison Copper/Gold Project in February 2009. The study described the scope,
design and financial viability of a conventional open pit mine with a 30,000
tonnes per day mill with a 21 year mine life.
The proven and probable mineable reserve was estimated to be 224.25 Mt with an
average grade of 0.33% Copper, 0.163 g/t Gold and 0.004% Molybdenum. The Capital
cost estimate was CDN $516.68 million (including a CDN $59.92 million
contingency allocation) and operating cost was CDN $8.15 per tonne milled over
the life of the mine. The Pre-Income Tax Internal Rate of Return (“IRR”) was
20.05%, based on metal prices of (four year trailing average as of January 12,
2009) Copper ($2.75), Gold ($658.32) and Molybdenum ($29.23). The Net Present
Value (“NPV”) at 8.0% discount rate was CDN $495.9M.
Using a 5.0% discount rate, the NPV based on the Feasibility Study is estimated
to be CDN $790M.
The Feasibility Study used historical four-year average metal prices calculated
as of January 12, 2009. The current upward trend in metal prices has resulted in
metals trading at prices that are currently higher than their respective four
year average price with the exception of molybdenum, which is lower. The Cdn to
US dollar exchange rate has increased since the Feasibility Study.
Silver was not included in the financial analysis; however, there is an
opportunity for improved economic performance if silver credits are received
from the treatment and refining of the copper concentrate. Metallurgical
test-work to date has reported silver present in the concentrate.
The Company’s current share capital is 14.9 M shares fully diluted including
250,000 common voting shares to be issued to Xstrata (formerly Noranda,
Falconbridge) upon the start of commercial production as part of the purchase
agreement with Noranda.
The mineral reserve estimates have been prepared and classified in accordance
with CIM Classification established under National Instrument 43-101 of the
Canadian Securities Administrators. The reserve estimate takes into
consideration all geologic, mining, milling and economic factors and is stated
according to Canadian Standards (NI 43-101). Under US standards, no reserve
declaration is possible until financing and permits are acquired.
The Company wishes to emphasize that it is strongly committed to continue to
work towards bringing the proposed Morrison Copper/Gold Project to commercial
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On Behalf of the Board of Directors
Erik Tornquist, Director