Positive Preliminary Economic Assessment for the Romero Gold-Copper Project

 

VANCOUVER, BC - GoldQuest Mining Corp. reported positive results from the un-optimized Preliminary Economic Assessment ("PEA") for a proposed underground mine at its 100% owned Romero and Romero South Gold-Copper Deposits in the Dominican Republic.

Highlights: A 15 year underground mine producing an average of 90,000 ounces of payable gold and 15.6 million lbs. of payable copper for each year of full production in two concentrates from 3,800 tones per day (129,000 ounces of gold equivalent ("AuEq")); All-in sustaining costs ("AISC"), net of copper and minor silver by-products, of $353/oz for 90,000 ounces of gold per year consisting of on-site operating cash costs (net of by-product credits of $557/oz) of $153, concentrate transportation and Treatment Charges /Refining Charges ("TC/RCs") costs of $147/oz, royalties of $21/oz and sustaining capital of $32/oz; Metal recoveries are estimated to be 83% for gold and 91% for copper resulting, after allowing for transportation and TC/RCs, in net payable gold of 79.2% and net payable copper of 86.5%; Total Life of Mine ("LOM") revenue of $2.35 billion, an undiscounted pre-tax cash flow of $0.86 billion ($0.60 billion post tax), producing 1.26 million ounces of payable gold (1.81 million payable ounces of AuEq.) from processing 18.5 million tones grading 2.69 g/t and 0.61% copper with a Net Smelter Return of $117 per tone and cash operating costs of $58.69 per tone; Total LOM capital cost of $374 million, which includes an initial capital cost of $333.5 million and a sustaining capital cost of $40.4 million; "We are proud to deliver a positive PEA for the Romero Project, our cornerstone asset in the Dominican Republic," commented Chief Executive Officer, Julio Espaillat. "Building on our low net All-In Sustaining Costs, we are actively addressing the capital intensity issues of the Romero project through ongoing optimization studies. We also hope to add value through discovery of new resources, which is the focus of our 10,000 meter 2014 exploration drilling program."

The PEA is preliminary in nature, 20% of the mine plan consists of 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 results of the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.