tdonb (26.58)

Pilot Gold PEA

October 10, 2012 – Comments (5) | RELATED TICKERS: PPP , BRD , CGR

Under the base case (Case A: $1,200/oz gold price and $2.90/lb copper price), the Project's pre-tax discounted net present value (NPV7%) is US$675 million with a pre-tax internal rate of return ("IRR") of 26% on an unleveraged 100% equity basis, and a pay-back period of only 2.1 years. The after-tax NPV7% is $474 million, with a 20% IRR and a 2.7 year payback. (See table below).

----------------------------------------------------------------------- ----- Pre-Tax After-Tax Parameter Unit Results Results ---------------------------------------------------------------------------- Case A Base Case ($1,200/oz Au; $2.90/lb Cu) ---------------------------------------------------------------------------- NPV0% M$ 1,418 1,115 NPV7% M$ 675 474 IRR % 26 20 Payback Period Years 2.1 2.7 ---------------------------------------------------------------------------- Case B ($1,350/oz Au; $3.30/lb Cu) LME fixed 3 year average price ---------------------------------------------------------------------------- NPV0% M$ 2,099 1,660 NPV7% M$ 1,081 799 IRR % 35 27 Payback Period Years 1.5 2.1 ---------------------------------------------------------------------------- Case C ($1,500/oz Au; $3.70/lb Cu) LME fixed 2 year average price ---------------------------------------------------------------------------- NPV0% M$ 2,779 2,204 NPV7% M$ 1,487 1,124 IRR % 43 34 Payback Period Years 1.2 1.6 PEA Highlights - Case A ($1,200/oz Au; $2.90/lb Cu) ---------------------------------------------------------------------------- Total gold produced (payable) 1.290 million ounces ---------------------------------------------------------------------------- Total copper produced (payable) 1.247 billion pounds ---------------------------------------------------------------------------- Average gold grade 0.30 g/t ---------------------------------------------------------------------------- Average copper grade 0.28% ---------------------------------------------------------------------------- Average annual gold production (payable) 92,140 ounces ---------------------------------------------------------------------------- Average annual copper production (payable) 89,070,000 pounds ---------------------------------------------------------------------------- Life of mine 14 years ---------------------------------------------------------------------------- Net Pre-Tax Operating Income $2,587 million ---------------------------------------------------------------------------- Total Capital Cost $1,168 million (including mining pre-strip, equipment, mill and processing, infrastructure & site costs, tailings and waste facilities, buildings, owners' costs, and miscellaneous indirect costs, contingency of $200.4 million, sustaining capital of $51.6 million and closure costs of $75 million) ----------------------------------------------------------------------------