Re: STINGRAY CORPORATE UPDATE
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posted on Dec 02, 2008 07:46AM
Edit this title from the Fast Facts Section
Stingray's El Pilar feasibility study well under way
2008-11-26 11:36 ET - News Release
Mr. Peter Mordaunt reports
STINGRAY CORPORATE UPDATE; STRONG FINANCIAL CONDITION FEASIBILITY STUDY ON TRACK AT EL PILAR COPPER PROJECT
Stingray Copper Inc.'s corporate objective is on schedule and well financed. Stingray Copper's chief executive officer, Peter Mordaunt, reports, "Stingray has maintained an enviable level of financial security underlying the corporation's mandate to complete the feasibility study of the El Pilar oxide copper project located in Sonora, Mexico."
Stingray has approximately $18-million of working capital, principally cash held on deposit at a major Canadian bank, with no debt and all its current financial obligations met. This represents 31 cents of cash per Stingray common share. The El Pilar feasibility study is well advanced with both Stingray engineers and third party consultants working toward completion of their contributions to the study. Stingray has already financed the majority of the feasibility study work. M3 Engineering & Technology Corp. will be overseeing the integration of all components of the feasibility study to be completed by April of 2009.
Management is well aware of current commodity price trends. These commodity price swings can also be advantageous for projects like El Pilar. As an example, one of the principal operating costs of an SX-EW (solvent extraction-electrowinning) project is sulphuric acid. The spot price of this commodity as reported by the research firm PentaSul has declined from a high of $650 (U.S.) per tonne to an October price of $150 (U.S.) per tonne. Stingray expects that operating cost reductions of this type, including fuel, will have positive effects upon the viability of the El Pilar project. There are many countervailing factors that may be beneficial at a time when copper prices have declined. Stingray's management team is greatly encouraged by this new operating cost landscape.
Mr. Mordaunt explains: "We expect to be sourcing project financing at a time when commodity prices are stabilizing. With traditional banks hampered by current economic difficulties, there are new lenders entering the commodities arena. We see more financial participation from sovereign wealth funds, private equity firms and commodity trading groups. A viable project with a good return always attracts attention. We expect to have many options available to advance the El Pilar project and add value for our shareholders, subject to a positive feasibility study."
El Pilar feasibility study update
Stingray's technical team and consultants are working with M3 on all aspects of the feasibility study:
These tests are designed to provide metallurgical copper recovery estimates, sulphuric acid and solvent extraction reagent consumptions:
Stingray is pleased to be working with such an experienced group of consultants and the El Pilar feasibility study being prepared by M3 will be a top-quality document that will be acceptable to financial institutions, governments and regulatory agencies. Stingray's current objective is to develop the El Pilar project as an open pit, heap leach, SX-EW copper mine that produces cathode copper.
Mr. Mordaunt, PGeo, is the qualified person responsible for the technical content of this release.