Preliminary economics back Tyler’s Bahuerachi

Vancouver – A positive preliminary economic assessment shows robust potential for Tyler Resources (TYS-V) Bahuerachi project, a bulk tonnage porphyry copper-zinc-molybdenum deposit in Chihuahua State, Mexico.

The preliminary economic assessment considered an open-pit resource of 238.3 million measured and indicated tonnes and 12.3 million inferred tonnes at an average grade of 0.4% copper, 0.9% zinc, 0.008% molybdenum, 0.04 gram gold, and 5 grams silver.

Predicted annual production is pegged at 183.8 millions lbs. copper, 311.3 million lbs. zinc, 2.33million lbs. molybdenum, 2.77 million oz. silver, and 14,180 oz. gold for 12 years, assuming a 60,000 tonne per day milling operation.

Total capital costs are estimated at US$619.25 million. A base case scenario assuming long term metal prices of US$1.50 per lb. copper, 80 per lb. zinc, $15 per lb. molybdenum, $500 gold and $10 silver gives the project a net present value of US$343 million at an 8% discount rate and would mean capital payback would occur in four years. Based on August three-year backward average metal prices, the net present value jumps to US$1.98 billion.

Tyler has drilled over 51,000 metres at Bahuerachi in the last four years to delineate a three-lobe, 4-km-long porphyry system. The centre lobe, known as the Main Deposit, holds measured and indicated resource of 525 million tonnes grading 0.4% copper, 0.55% zinc, 0.008% molybdenum, 4 grams silver and 0.03 gram gold per tonne, based on a 0.2% copper cutoff grade.

Two other zones, the North Lobe and the Goat-South Porphyry Zone, are not part of the resource estimate although exploration drilling has confirmed that both are mineralized. Drilling on all three lobes continues. Results from this summer indicate the previously inferred width of the deposit’s Main Zone may have been underestimated. The Goat-South Zone is similar in size to the Main Deposit, and the North Lobe is larger.