Chariot report places Justa on lower half of cost curve

2009-05-05 11:57 ET - News Release

Mr. Ulli Rath reports

CHARIOT RESOURCES CONFIRMS GLOBAL COMPETITIVE POSITION OF MINA JUSTA PROJECT

Chariot Resources Ltd. has released the findings of a report by Brook Hunt, which indicate that the cash cost for Mina Justa is in the lower half of the 2009 world copper cash cost curve. Mina Justa is located at the Marcona copper property in Peru, owned by Marcobre SAC (Marcobre), which is in turn owned 70 per cent by Chariot.

Brook Hunt was asked to undertake the following analyses:

1. Pinpoint the Mina Justa project on the 2009 cost curve using the project's life-of-mine average costs, as provided by Marcobre;
2. Pinpointing the Mina Justa project on the 2009 cost curve, using the Marcobre life-of-mine average costs, but adjusting metal price and TC/RC forecasts to Brook Hunt's estimates for 2009, consistent with the peer group.

Using data provided by Marcobre, Brook Hunt calculated a life-of-mine, C1, direct, cash cost of 84.6 cents per pound for the Mina Justa project. For consistency, Brook Hunt excluded from this analysis mining royalties and other items included in the feasibility study estimate of C1 cash costs of 88.5 U.S. cents per pound contained in Chariot's April 23 news release in Stockwatch.

Brook Hunt also modified the data used in the feasibility study estimate to reflect Brook Hunt's estimates for metal prices and TC/RC's for 2009, resulting in a final C1 cash cost of 79.8 cents per pound, equivalent to a position between the 47th and 48th percentiles on the 2009 cost curve.

"Chariot is pleased that Brook Hunt's analysis has confirmed the attractive position of Mina Justa, in terms of its global competitiveness," said Ulli Rath, Chariot president and chief executive officer. He went on to say, "Although these operating costs are a solid foundation, we are looking at incorporating cost-saving opportunities into the feasibility study, which could further enhance the competitive position of Mina Justa."

by Marcobre, Brook Hunt calculated a life-of-mine, C1, direct, cash cost of 84.6 cents per pound for the Mina Justa project. For consistency, Brook Hunt excluded from this analysis mining royalties and other items included in the feasibility study estimate of C1 cash costs of 88.5 U.S. cents per pound contained in Chariot's April 23 news release in Stockwatch.

Brook Hunt also modified the data used in the feasibility study estimate to reflect Brook Hunt's estimates for metal prices and TC/RC's for 2009, resulting in a final C1 cash cost of 79.8 cents per pound, equivalent to a position between the 47th and 48th percentiles on the 2009 cost curve.

"Chariot is pleased that Brook Hunt's analysis has confirmed the attractive position of Mina Justa, in terms of its global competitiveness," said Ulli Rath, Chariot president and chief executive officer. He went on to say, "Although these operating costs are a solid foundation, we are looking at incorporating cost-saving opportunities into the feasibility study, which could further enhance the competitive position of Mina Justa."