Esperanza Provides San Luis Feasibility Update

VANCOUVER, BC – Esperanza Silver Corp. reported that it has completed its preliminary review of the San Luis Feasibility Study provided to it by Silver Standard Resources Inc., its joint-venture partner on the Peruvian gold and silver project. Esperanza now anticipates a forthcoming joint-venture meeting to discuss the study and determine the best path toward production.
The Feasibility Study estimates an internal rate of return of 26.5% and a net present value, discounted at 5%, of US$39.2 million using base case prices of US$800/ounce gold and US$12.50/ounce silver. At near current prices (US$1170/ounce gold and US$18.50/ounce silver) the rate of return is 58.0% and the net present value is US$109 million.
Capital expenditures are estimated to be US$90.4 million (+/- 15%) for a 400 tonne/day underground mine with annual production of 78,000 ounces of gold and 1.86 million ounces of silver annually over its 3.5 year mine life.
In this resource estimate, measured and indicated resources totalled 484,000 tonnes grading 22.4 grams of gold and 578.1 grams of silver per tonne containing 348,100 ounces of gold and 9,003,300 ounces of silver.
The mineral reserves were estimated using metal prices of US$800/ounce gold and US$12.50/ounce silver, metallurgical recoveries of 94.0% for gold and 90.0% for silver and an operating cost of US$160.83 per tonne of ore processed to determine a breakeven cut-off grade for reserves of 6.9 g/t gold-equivalent.
The company’s address is 570 Granville Street, Suite 300,Vancouver, BC V6C 3P1, (604) 685-2242, fax: (604) 688-1157.