REG - Metals Exploration - Initial Estimates from La India Internal Studies

Metals ExplorationAnnouncement

17/01/2025 07:15

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RNS Number : 7503T  Metals Exploration PLC  17 January 2025

17 January 2025

METALS EXPLORATION PLC

Initial Estimates from Internal Studies at La India

Metals Exploration plc (AIM: MTL) ("Metals Exploration" or the "Company") a
gold production, exploration, and development company with assets in the
Philippines and Nicaragua, is pleased to announce the initial estimates from
internal studies conducted on the La India gold project in Nicaragua ("La
India").

In November 2024, the Metals Exploration team visited the site, and conducted
a number of studies to assess the potential operational and financial
performance of La India. The Company's initial estimates show significant
improvements from the Bankable Feasibility Study ("BFS") conducted in 2022 by
SRK Consulting.

The initial estimates can be found in the table below, with the BFS 2022 for
comparison.

 Parameter               Units   BFS 2022               Internal Study 2025

                                 (updated gold price)
 LoM                     Years   8.4                    12.4
                                                        Open pit / Underground

 Mining Method           N/A     Open Pit
 Annual Production (Au)

                         Oz      71,600                 145,000
 Yearly Ore Production   Ktpa    890                    1,400
 Grade (Au)              g/t     2.56                   3.53
 Production LoM          Oz      548,000                1,800,000
 Commodity Price (Au)    US$/oz  2,500                  2,500
 Initial Capex           US$mm   116                    122
 All in Sustaining Cost  US$/oz  1,058                  1,176
 NPV (6%)                US$mm   338                    882
 IRR                     %       71                     54

 

Bringing La India into Production

·      Metals Exploration is targeting the commencement of production at
La India by the end of 2026

·      The Company is in final negotiations to purchase a  second-hand
plant to match the potential upside performance of 1,400 kilotonnes per annum
(Ktpa) of ore

·      It is anticipated that an engineering firm will be appointed in
February 2025 to commence construction drawings

·      Exploration drilling and definition drilling is expected to
commence in April 2025

·      Civil works are expected to begin in May 2025

 

Darren Bowden, CEO of Metals Exploration, commented:

"We are delighted to have completed the acquisition of Condor Gold plc and are
now able to share the initial estimates from internal studies on La India
following a site visit by the Metals Exploration team in November 2024. We are
well advanced with efforts to commence construction production, and have an
established in-country team of Spanish speakers who I have previously worked
with. Our aim is to bring La India into production before the end of 2026, in
order to replace cashflow from Runruno as it approaches the end of life of
mine."

 

 

For further information, please contact or visit:

 Metals Exploration PLC
 Via BlytheRay                            +44 (0) 207 138 3204

 Nominated & Financial Adviser:           STRAND HANSON LIMITED
 James Spinney, James Dance, Rob Patrick  +44 (0) 207 409 3494
 Broker:                                  HANNAM & PARTNERS
 Matt Hasson, Franck Nganou               +44 (0) 207 907 8500

 Public Relations:                        BLYTHERAY
 Megan Ray, Said Izagaren                 +44 (0) 207 138 3204

 

Web:                www.metalsexploration.com
(http://www.metalsexploration.com)

X:                     @MTLexploration
(https://twitter.com/MTLexploration)

LinkedIn:           Metals Exploration
(https://www.linkedin.com/company/metals-exploration-plc)

 

Competent Person's Statement

 

Mr Darren Bowden, a director of the Company, a Member of the Australasian
Institute of Mining and Metallurgy and who has been involved in the mining
industry for more than 25 years, has compiled, read and approved the technical
disclosure in relation to the projects in this regulatory announcement in
accordance with the AIM Rules - Note for Mining and Oil & Gas Companies.

 

Forward Looking Statements

 

Certain statements relating to the estimated or expected future production,
operating results, cash flows and costs and financial condition of Metals
Explorations, planned work at the Company's projects and the expected results
of such work contained herein are forward-looking statements which are based
on current expectations, estimates and projections about the potential returns
of the Group, industry and markets in which the Group operates in, the
Directors' beliefs and assumptions made by the Directors. Forward-looking
statements are statements that are not historical facts and are generally, but
not always, identified by words such as the following: "expects", "plans",
"anticipates", "forecasts", "believes", "intends", "estimates", "projects",
"assumes", "potential" or variations of such words and similar expressions.
Forward-looking statements also include reference to events or conditions that
will, would, may, could or should occur. Information concerning exploration
results and mineral reserve and resource estimates may also be deemed to be
forward-looking statements, as it constitutes a prediction of what might be
found to be present when and if a project is actually developed.

 

These statements are not guarantees of future performance or the ability to
identify and consummate investments and involve certain risks, uncertainties
and assumptions that are difficult to predict, qualify or quantify. Among the
factors that could cause actual results or projections to differ materially
include, without limitation: uncertainties related to raising sufficient
financing to fund the planned work in a timely manner and on acceptable terms;
changes in planned work resulting from logistical, technical or other factors;
the possibility that results of work will not fulfil projections/expectations
and realize the perceived potential of the Company's projects; uncertainties
involved in the interpretation of drilling results and other tests and the
estimation of gold reserves and resources; risk of accidents, equipment
breakdowns and labour disputes or other unanticipated difficulties or
interruptions; the possibility of environmental issues at the Company's
projects; the possibility of cost overruns or unanticipated expenses in work
programs; the need to obtain permits and comply with environmental laws and
regulations and other government requirements; fluctuations in the price of
gold and other risks and uncertainties.

 

The Company expressly disclaims any obligation or undertaking to disseminate
any updates or revisions to any forward looking statements contained herein to
reflect any change in the Group's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statements are
based unless required to do so by applicable law or the AIM Rules.

 

 

 

 

 

 

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