Early economics robust at Barytex’s Shituru copper

Vancouver – A recently completed scoping study forecasting robust economics at International Barytex Resources‘ (IBX-V, IBYXF-O) Shituru copper project, located in the Katanga Province of Democratic Republic of Congo (DRC), has the junior eyeing producer status.

Projections in an independent engineering firm’s preliminary assessment indicates average copper output of roughly 75 million lbs. (34,000 tonnes) annually over a nine year mine-life at the proposed open pit operation. An average cash cost of US57 per lb. (exclusive of royalties) is tabled.

“We are particularly pleased with the low cash costs and substantial copper production in the initial years of operation,” says International Barytex president Leo King in a prepared statement.

The study led by engineers Bateman Metals & Mining tables anticipated capital costs of US$228 million to build the operation with production commencing in 2011. The processing facility will have an annual capacity of one million tonnes for ore that averages 4.1% copper.

Based on a US$1.50 per lb. copper price, the mine is expected deliver a 12% internal rate of return (IRR), shows a US$34-million net present value (NPV) at an 8% discount and has a 3.8-year payback. At US$3.00 per lb. copper, Shituru has a 42% IRR, US$405-million NPV and 1.5-year payback.

The report is based on a resource estimated tabled in mid-2007 showing 7.9 million indicated tonnes grading 4.4% copper and 0.08% cobalt (based on a 1% copper cut-off grade) in the Upper and Lower zones. The pit modeled on the resource has a life-of-mine strip ratio of 3.9-1.

Ore from the Upper zone is generally low-acid consuming and will be processed using whole ore leaching technology under the development plan. With the deeper ore being high-acid consuming, processing plans call for flotation concentrate leaching to produce a copper-oxide concentrate that will then be fed into the standard SX-EW plant.

Metallurgical recoveries of about 84% are projected over the life-of-mine.

As it moves forward with its feasibility study (expected by Q3-2008), Barytex says it wants to further fine-tune economics improving cost, schedule and metal output figures.

Shituru is located near the DRC city of Likasi with access to power and water infrastructure. Barytex is earning a 65% indirect interest in the project through an option deal where it can acquire up to an 86.67% interest in the private company East China Capital Holdings. East China’s sole asset is an option to acquire a 75% interest in the deposit from the Congolese government-owned Generale des Carrieres et des Mines (Gecamines).

With its stock recent trading around the 60level and 40.6-million shares outstanding, Barytex posts a $24-million market capitalization. The company has a 52-week trading range of 60-$2.30.