Yorbeau Resources Inc. Files Technical Report on Preliminary Economic Assessment of Scott Lake Deposit
Project indicates pre-tax IRR of 16.6% with an NPV8% of $146 million
MONTRÉAL, QUÉBEC - Dec. 19, 2017 - Yorbeau Resources Inc. (TSX:YRB) (the "Company" or "Yorbeau") is pleased to announce that it has filed on SEDAR a Technical Report in compliance with National Instrument 43-101 (NI 43-101) on a Preliminary Economic Assessment ("PEA") of the Company's 100% owned Scott Lake Project near Chibougamau, Quebec. The Technical Report was prepared by Roscoe Postle Associates Inc. ("RPA").
Under the base case PEA, the Scott Lake mineralized material is fed to a new 2,500 tonne-per-day concentrator plant located at the mine site. Results indicate positive economics with a pre-production capital expenditure of $215 million, a net pre-tax cash flow of $519 million, an Internal Rate of Return ("IRR") of 16.6%, a pre-tax Net Present Value ("NPV") of $146 million at an 8% discount rate, and a mine life of 15 years.
The PEA economic analysis is based in part on Inferred Mineral Resources, and is preliminary in nature. Inferred Mineral Resources are considered too geologically speculative to have mining and economic considerations applied to them and to be categorized as Mineral Reserves. There is no certainty the economic forecasts based on this PEA will be realized.
Yorbeau's news release dated November 20, 2017 summarizes the assumptions and key results contained in the Technical Report. There are no material differences between the key results contained in Yorbeau's news release dated November 20, 2017 pertaining to the Scott Lake deposit, from those contained in the Technical Report filed today. Economic analysis in the Technical Report includes both pre-tax and after-tax results.
Work at Yorbeau is carried out under the supervision of Gérald Riverin, PhD, P. Geo. He is a qualified person (as defined by NI 43-101) and has reviewed and approved the content of this release. The Technical Report and PEA referred to in this press were prepared by William E. Roscoe, Ph.D., P.Eng. and Normand Lécuyer, P.Eng. Both are employees of RPA and are independent of Yorbeau. By virtue of their education and relevant experience, they are "Qualified Persons" for the purpose of National Instrument 43-101. William E. Roscoe and Normand Lécuyer have read and approved the contents of this press release as it pertains to the disclosed mining, milling and cost estimate aspects.
About Yorbeau Resources Inc.
The Company's 100% controlled Rouyn Property contains four known gold deposits in the 6-km-long Augmitto-Astoria corridor situated on the western half of the property. Two of the four deposits, Astoria and Augmitto, have substantial underground infrastructure and have been the subject of NI 43-101 technical reports that include resource estimates. In 2015, the Company expanded its exploration property portfolio by acquiring strategic base metal properties in prospective areas of the Abitibi Belt of Quebec and Ontario that also feature infrastructure favourable for mining development. The newly acquired base metal properties include Scott Lake which hosts important mineral resources and on which a positive Preliminary Economic Assessment was recently completed.
More information on the Company may be found on the Company's website at www.yorbeauresources.com.
Forward-looking statements: Except for statement of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements. The results of the economic analysis represent forward-looking information, as defined under Canadian securities laws, that is subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those presented in the PEA. RPA is of the opinion that the accuracy of the results is in the range of industry wide commonly accepted scoping studies.
G. Bodnar Jr.
Yorbeau Resources Inc.
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