St. Genevieve Resources Ltd.
CNQ : SGVL

St. Genevieve Resources Ltd.

July 10, 2007 11:31 ET

St. Genevieve Resources Ltd.: Positive Pre-feasibility Study for the Emerald Isle Mine Received

MONTREAL, QUEBEC--(Marketwire - July 10, 2007) - ST. GENEVIEVE RESOURCES LTD. (CNQ:SGVL) (the "Company") is pleased to announce that it has received from Behre Dolbear, consulting engineers, of Denver Colorado, the final Pre-Feasibility Study on the Company's Emerald Isle Copper Mine located in NW Arizona. The proposed operation at the Emerald Isle mine will be profitable at the current price of copper. This study demonstrates that the mineralization is amenable to conventional heap leaching and SXEW processing with average recoveries of 75% in 85 days and up to 85% for the life of the mine.

The capital cost to develop the mine is estimated to be between US$9.0 and US$10.4 million depending on the combination of the pieces of mining equipment that are purchased (new or used) or leased. Given the considerable infrastructure already in place, the lead time to develop the mine to production status is estimated to be 6 months.

Other highlights of the study are:

1) 76% recovery in 85 days and +85% recovery over the life of the resource;

2) 22 million lbs of copper expected to be produced over the life of the mine of 4 years;

3) Using a US$3.00 copper price and a capital cost of US$9.0 million (the used equipment scenario), the project has an IRR of 25.2% and a Discounted NPV (at 5%) of US$5.1 million. The estimate of total net income over the life of the operation is US$12.7 million; and

4) Using a US$3.50 copper price and a capital cost of US$9.0 million (the used equipment scenario), the project has an IRR of 48.1% and a Discounted NPV (at 5%) of US$11.6 million. The estimate of total net income over the life of the operation is $22.7 million.

Since the preparation of the report, the Company has made considerable progress in mitigating the identified risk concerning the project water requirements. The Company will be conferring with its financial advisors to discuss the project financing options. The information reported herein is contained in a report prepared by Behre Dolbear and Company (USA) Inc., consulting mining engineers based in Denver Colorado, under the supervision of Mark Anderson and Bob Dimock who are qualified persons. The report can be found on WWW.SEDAR.COM.

St. Genevieve Resources Ltd. is an exploration and development company with its principal assets located in Arizona and Nevada, USA. The Company is listed on the CNQ Exchange under the symbol SGVL. There are 199,521,201 shares issued and outstanding.

Prepared on behalf of the Board,

"Bryan Wilson", President & CEO

This press release includes certain "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements".

Shares issued and outstanding: 199,521,201

The CNQ Exchange has not reviewed the contents of this press release nor has it passed upon the merits of the information presented herein. Furthermore, the CNQ Exchange does not accept responsibility for the adequacy or accuracy of this release nor has it approved or disapproved the contents contained herein.

Contact Information

  • ST. GENEVIEVE RESOURCES LTD.
    Michel Cote
    514-866-6001 - Ext. 266
    514-866-6193 (FAX)
    INFO@SGV.CA
    WWW.SGV.CA