Euro Sun Announces Positive Results for Preliminary Economic Assessment for the Initial Phase of Development at the Rovina Valley Gold-Copper Project

2/20/2019, 12:00 PM (Source: GlobeNewswire)

TORONTO, Feb. 20, 2019 (GLOBE NEWSWIRE) -- Euro Sun Mining Inc. (TSX: ESM) (“Euro Sun” or the “Company”) is pleased to announce the results of the Preliminary Economic Assessment (“PEA”) for the exploitation of the COLNIC open pit; the initial phase of development of its Rovina Valley gold and copper project (the “Rovina Valley Project”). The Company is applying a staged, multi phase development approach for the Rovina Valley Project. The Rovina Valley Project consists of the COLNIC and ROVINA gold-copper deposits amenable to open-pit development and the CIRESATA gold-copper deposit suitable for underground development. The PEA considers the COLNIC mineral deposit only but does include the processing facilities which will also be used in treating both ROVINA and CIRESATA deposits. Sequencing for the ROVINA open pit and CIRESATA underground mine will be undertaken in a separate study at a later date. The Company is also pleased to provide an updated mineral resource estimate for the Rovina Valley Project incorporating current metal prices and operating parameters. All amounts are in US dollars unless otherwise indicated.  


  • Average annual gold equivalent production of 139,000 ounces
  • COLNIC production of 1,675,000 Gold Equivalent ounces (1,301,000 ounces Au) over 12 years
  • Avg. AISC of $752/oz (net of copper credit)
  • Processing rate of 20,000 tonnes per day incorporating flotation and dry stack tailings deposition
  • Pre-Tax NPV5% of $218.1 million with an IRR of 15.4% and Post-Tax NPV5% of $168.8 million with an IRR of 13.5% at $1,325/oz gold and $3.10/lb copper
  • Initial capital costs of $339.7 million (total CAPEX of $352 million)
  • Average metallurgical recoveries of 82% for gold and 89% copper without utilizing cyanide

Scott Moore, Euro Sun’s CEO states, “The 2019 PEA highlights a positive economic project for our initial phase of development at the Rovina Valley Project. Colnic is an at surface open pit deposit containing only 28.6% of the total measured and indicated resources at the Rovina Valley Project. Colnic will form the foundation of a multi-decade operation with the expectation of bringing the Rovina pit on-line using pre-installed infrastructure followed by the Ciresata deposit.”

Table 1: Preliminary Economic Assessment Highlights

Base Case Assumptions
Gold price (base case)$1,325/oz
Copper price (base case)$3.10/lb
Gold recovery82%
Copper recovery89%
Mine Life (Colnic Only)12 years
Mining rate20,000 tonnes per day
Mine Parameter  
Average annual gold equivalent production139,000 ounces
Average annual gold production108,000 ounces
Average annual copper production13.3 million pounds
Average gold grade g/t0.58
Average copper grade %0.10
Colnic LOM Strip ratio (waste to ore)1.9:1
Capital Costs  
Pre-strip capital$33.5 million
Initial capital$306.2 million
Total Initial Capital$339.7 million
Sustaining Capital$12.2 million
Total CAPEX$352 million
Operating Costs
All-in sustaining costs$752/ ounce AuEq
Mining costs$2.25 /tonne moved
Milling costs$7.03 /tonne milled
G&A costs$0.50 /tonne milled
Cash Flow 
Pre-Tax NPV (5% discount rate)$218 million
Pre-Tax IRR15.4%
Post-Tax NPV (5% discount rate)$169 million
Post-Tax IRR13.5%

The PEA was prepared by Lycopodium Minerals Canada Limited and AGP Mining Consultants Inc. (“AGP”) The technical report related to the PEA results will be filed on SEDAR within 45 days, in accordance with National Instrument 43-101 (“NI 43-101”)

Rovina Valley Project Resource Update 2019

Euro Sun announces its updated NI 43-101 compliant mineral resource estimate ("2019 Resource Estimate") as provided by independent consultants AGP, on Euro Sun’s 100% owned Rovina Mining License in west-central Romania. The 2019 Resource Estimate includes the COLNIC, ROVINA and CIRESATA gold-rich copper porphyry deposits, collectively referred to as the Rovina Valley Project. All three deposits are in close proximity and mill feed will be treated at a central facility. COLNIC and ROVINA are amenable to open-pit mining and CIRESATA to bulk underground mining.

The 2019 Resource Estimate is an update to the 2012 NI 43-101 compliant Resource Estimate (completed by AGP) (the “2012 Resource Estimate”) to primarily reflect higher operating costs, new metallurgical recoveries (see ESM Press Release dated 19 September, 2018), and higher metal prices on resource constraining Lerchs-Grossman open pits using appropriate cut-off grades. The geologic model and interpolated block model from the 2012 Resource Estimate are not changed in this current estimate (see the 2012 Resource Estimate filed on SEDAR on 31 August, 2012). Mineral resources were estimated in conformance with the CIM Mineral Resource and Mineral Reserve definitions referred to in NI 43-101 and are considered to have reasonable prospects for economic extraction.

The updated resource estimate is shown below. The technical report related to the mineral resource estimate shown below will be filed on SEDAR at within 45 days.

Table 2: Rovina Valley Project 2019 Mineral Resource Estimate at base case cut-off grades (as of February 19, 2019)

Resource CategoryTonnage
(MM t)
(MM oz)
(MM lbs)
Au Eq*
Au Eq*
(MM oz)
Rovina (open-pit)32.10.360.290.37208.50.530.83
Colnic (open-pit)29.20.650.120.6174.30.820.77
Ciresata (underground)28.50.880.160.81102.21.131.03
Total Measured90.00.620.191.78305.10.912.63
Rovina (open-pit)
Colnic (open-pit)106.50.470.101.62227.50.622.12
Ciresata (underground)125.90.740.153.01413.40.973.92
Total Indicated307.20.530.155.261,005.50.767.47
Total Measured & Indicated396.00.550.167.051,390.60.7910.11
  • *Au eq. determined by using a long-term gold price of US$1,500 per ounce and a copper price of US$ 3.30/lb. Metallurgical recoveries are not taken into account for Au eq.
  • Base case cut-off grade used in the table are 0.35 g/t Au eq. for the Colnic deposit and 0.25% Cu eq for the Rovina deposit, both of which are amenable to open-pit mining and 0.65 g/t Au eq. for the Ciresata deposit which is amenable to underground bulk mining.
  • For the Rovina and Colnic porphyries, the resources are pit-shell constrained using Lerchs-Grossmann algorithm pit optimizer and market metal values of $1,500/oz Au price and $3.30/lb Cu price, with net prices after smelter payables, concentrate transport, smelter charges, and royalty of US$1,384/oz Au and US$2.61/lb Cu for Colnic and US$1,286/oz Au and US$2.59/Ib Cu for Rovina.  Flotation metallurgical recoveries used are: Colnic 81.5% gold, 88.5% copper and Rovina 73.2% gold, 94.7% copper.
  • Rounding of tonnes as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content.
  • These mineral resources are not mineral reserves as they do not have demonstrated economic viability

At both the ROVINA and COLNIC deposits, there are higher-grade portions of each deposit that outcrop at surface. These areas represent higher grade porphyry core mineralization that can allow cut-off grade optimization in mining scenarios. As an example, the higher-grade mineralization at COLNIC contains measured plus indicated resources at >0.70 g/t Au eq of 46 million tonnes at 0.75 g/t Au and 0.12% Cu. At the ROVINA deposit, the higher-grade mineralization contains measured plus indicated resource at >0.50% Cu eq of 30 million tonnes at 0.48 g/t Au and 0.34% Cu. CIRESATA has a continuous zone of high-grade gold and copper mineralization in the core of the deposit that persists at depth that is suitable for extraction with an underground bulk-mining method. At CIRESATA, the measured plus indicated resource of this core at >1.0 g/t Au eq contains 58 million tonnes at 1.04 g/t Au and 0.18% Cu.

Qualified Persons

The mineral resources and PEA results stated in this press release have been reviewed and approved by Mr. Pierre Desautels, P.Geo., and Mr. Gordon Zurowski, P.Eng, both Principal Partners of AGP, who are independent Qualified Person as defined by National Instrument 43-101. Mr. Desautels was responsible for the mineral resource estimate and Mr. Zurowski was responsible for the mining aspects of the mineral resource estimate and PEA study. Mr. Desautels and Mr. Zurowski confirmed that they have reviewed the information in this press release as it relates to the mineral resource estimate.

Mr. Randy Ruff, P.Geo, an employee of Euro Sun and a qualified persons as defined by NI 43-101 has also reviewed and approved the contents of this press release relating to the mineral resource estimation.

About Euro Sun Mining Inc.

Euro Sun is a Toronto Stock Exchange listed mining company focused on the exploration and development of its 100%-owned Rovina Valley Gold and Copper Project located in west-central Romania. The property hosts 10.11 million gold equivalent ounces (7.05 million ounces of gold grading 0.55 g/t and 1,390 million pounds of copper grading 0.16%).

Further information:

For further information about Euro Sun Mining, or the contents of this press release, please contact Investor Relations at or +1 416.309.4299.

Caution regarding forward-looking information:

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the PEA and the 2019 Resource Estimate and the summary information extracted therefrom. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks inherent in the mining industry and risks described in the public disclosure of the Company which is available under the profile of the Company on SEDAR at and on the Company's website at Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information 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 information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

The TSX does not accept responsibility for the adequacy or accuracy of this news release.

Eurosun_Logo_Secondary (003).jpg

Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.