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30/11 - DARGUES REEF GOLD PROJECT FEASIBILITY STUDY : ROBUST GOLD MINE CONFIRMED

50,000oz per annum GOLD MINE CONFIRMED, DEVELOPMENT TARGETED TO COMMENCE 2011.

HIGHLIGHTS

┬À Positive Feasibility Study confirms viability of Phase 1 underground mining operation at Dargues Reef Gold Project, NSW.

┬À Key Phase 1 outcomes include:

§ Ore production rate of 330,000tpa.

§ Average annual production of 50,000oz pa.

§ Production of 248,900 recovered ounces over an initial 6 year mine life.

§ Estimated average life-of-mine cash operating cost of A$628/oz (excluding royalties and contingencies)

§ Maiden mining inventory of 1.58Mt @ 5.12/t Au for 248,900oz.

§ First year capital requirement A$42 million.

§ Estimated gross sales revenue of +A$300 million over Phase 1 life of mine.

§ Life-of-mine pre-tax operating profit of $80 million.

§ Pre-tax NPV8% of A$47 million and IRR of 30% using a A$1,250/oz gold price.

§ Pre-tax NPV8% of A$75 million and IRR of 42% using current spot price of A$1,400.

┬À 40% increase in recovered metal compared with Scoping Study 248,900oz of gold and 73,144oz of silver.

┬À A$42 million pre-production capital cost estimate includes establishment of the box-cut and 6 months underground development,

plant construction (including paste plant) and tailings dam construction.

To read the full announcement, please click the following link ;

http://www.cortonaresources.com.au/files/announcements/216%20-%20Dargues...

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