April 13, 2009 North American Tungsten Corporation Ltd. Files The Feasibility Study Technical Report On The Mactung Property - Yukon, Canada On SEDAR
North American Tungsten Corporation Ltd. (the "Company" or "NATCL") is pleased to announce that the National Instrument 43-101 Compliant Technical Report on the Mactung Property - Yukon, Canada prepared for the Company by Wardrop, A Tetra Tech Company ("Wardrop"), dated April 3, 2009 ("Technical Report"), has been filed for public access on SEDAR (see press release dated Feb 23, 2009).
HIGHLIGHTS
Mactung economics are positive with a 23.5% Internal Rate of Return and a pre-tax Net Present Value discounted at 8% of CDN$277 million.
The Technical Report is based on an initial 2,000 tpd underground mine with an 11 year Life of Mine (LOM).
There is potential to expand the initial LOM with exploitation of the open pit resource.
Mactung is forecast to produce an average of 749,000 Metric Tonne Units (MTU's) of WO3 over the first five years of operation.
The average operating cost for the first five years of operation is estimated to be CDN$104/MTU.
The estimated capital cost is CDN$356.5 million plus a CDN$45.6 million contingency.
Capital payback is expected to be in 2.9 years.
The Mactung Project is forecast to run at 2,000 tonnes per day from an underground operation using conventional long hole plus cut and fill mining methods. An underground primary crusher and conveyor will supply ore to the surface facility where the ore will be processed into both a premium gravity concentrate (67% WO3) and a flotation concentrate (55% WO3). Recovery of WO3 is expected to average 81.7% and the mine will average 749,000 MTU's of WO3 in concentrates during the first five years of operation.
Key parameters that form the basis of the economic evaluation of the Mactung Project are as follows:
Underground Life of Mine Production:
8.1 million tonnes of 1.09% WO3
Annual Throughput:
730,000 tpa
Recovery first 5 years:
81.7%
Average annual production first 5 years:
749,000 MTU's
Operating cash cost first 5 years:
CDN$104/MTU
Capex including contingency:
CDN$ 402.1 million
APT pricing:
US$300/MTU of WO3
Exchange Rate $US/$CDN:
0.88
The pre-tax net present value of the project based on an 11.0 year mine life and the base case parameters as previously indicated are as follows:
Discount Rate
Pre-Tax Net Present Value
8%
CDN$276.8 million
6%
CDN$346.4 million
The pre-tax internal rate of return for the project is 23.5%. Payback of invested capital is anticipated to occur in 2.9 years after commencement of production.
The Technical Report on the Mactung Property - Yukon, Canada prepared by Wardrop under the direction of Mr. Nory Narciso P.Eng., who is a Qualified Person as defined under NI 43-101, and who has reviewed and approved the contents of this press release.
ABOUT NORTH AMERICAN TUNGSTEN CORPORATION LTD.
The Company is a publicly listed Tier 1 Junior Resource Company engaged primarily in the operation, development, and acquisition of tungsten and other related mineral properties in Canada. The Company's 100% owned Cantung mine and Mactung development project make it one of the few tungsten producers with both a producing mine and strategic development asset in the western world. Mactung is one of the world's largest known undeveloped high grade tungsten-skarn deposits.
ON BEHALF OF THE BOARD OF DIRECTORS
"Stephen M. Leahy"
Stephen M. Leahy
Chairman & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release." Cautionary Note: The Company relies upon litigation protection for "forwardlooking" statements.
Cautionary Note
Safe Harbour Statement under the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation: Except for the statements of historical fact contained herein, the information presented contains "Forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and similar Canadian legislation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects," "budget," "scheduled," "estimates," "forecasts," "intends," "anticipates," "believes," or variation of such words and phrases that refer to certain actions, events or results to be taken, and other factors which may cause the actual results, performance or achievements of North American Tungsten Corporation Ltd. To be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual results of reclamation activities, the estimation or realization of mineral reserves and resources, the timing and amount of estimated future production, costs of production, capital expenditures, future prices of commodities, possible variations in ore grade or recovery rates, efficacy and efficiency of milling process, failure of plant, equipments or processes to operate as anticipated, accidents, labour disputes and other risks in the mining industry. Although North American Tungsten Corporation Ltd. has attempted to identify important factors that could cause actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained herein and in North American Tungsten Corporation Ltd.'s other filing incorporated by reference.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: This press release may use the terms "Measured," "indicated" and "inferred" Resources. United States investors are advised that while such terms are recognized and required by Canadian regulators, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.
INVESTOR CONTACT:
Toni Davies
, T: +1.604.684.5300 Fax: +1.604.684.2992
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