🕐18.05.10 - 23:58 Uhr

Sona Releases Blackdome-Elizabeth Preliminary Economic Assessment



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Sona Releases Blackdome-Elizabeth Preliminary Economic Assessment

Positive Cash Flow Projected from Processing at the 200 Tonne per Day Blackdome Mill

VANCOUVER, May 18, 2010 � Sona Resources Corp. (the "Company" or "Sona"; TSXV- SYS, Frankfurt-QS7) is pleased to announce that it has received the Preliminary Economic Assessment evaluation from Micon International Ltd. ("Micon") of mining the known mineral resources at the Blackdome Gold Mine ("Blackdome") and the Elizabeth Gold Property ("Elizabeth") and processing them at the former-producing Blackdome mill.

The economic review contemplates underground mining at Blackdome and Elizabeth with a 200 tonne per day mill throughput over an eight-year mine life, to recover 183,600 ounces of gold and 62,500 ounces of silver. Operating cash costs are projected to average $686 per ounce or $208 per tonne milled over the life of the project. Pre-production capital costs at Blackdome and Elizabeth are estimated at $11.4 million and $9.4 million, respectively, with a combined sustaining capital of $9.45 million. The pre-tax cash flow is estimated to be a positive $27million, and the after-tax cash flow $20 million.

"Were very pleased with the results of the Preliminary Assessment," says John P. Thompson, Sonas President and CEO. "The report shows a very positive economic projection for mining operations at Blackdome and Elizabeth with processing at the Blackdome mill. This analysis is a baseline scenario. The project is sensitive to the price of gold and a 15% increase in the price to $1,093 generates an increase in pre-tax cash flow to about $54 million. We also see a great deal of upside through increasing the Elizabeth gold resource and an increased mill throughput."

Highlights of the Preliminary Assessment (base case using US$950 per ounce gold price)

Estimated recovery of indicated resources of 48,673 tonnes grading 12.9gAu/t and 46.1g Ag/t (total 13.5g Au/t equivalent) for the Blackdome deposit with mine recovery of 95% and dilution of 8%. Estimated recovery of inferred resources of 23,478 tonnes grading 13.3g Au/t and 16.0g Ag/t (total 13.5g Au/t equivalent) for the Blackdome deposit with mine recovery of 95% and dilution of 8%. Estimated recovery of inferred resources of 526,089 tonnes at 10.19g Au/t for the Elizabeth deposit with mine recovery of 100% and dilution of 10%. A target production rate of 200 dry metric tonnes per day (dmt/d), or 73,000 dry metric tonnes per year, to match previous Blackdome mill production levels, which will help simplify the permitting process. A mine life of some eight years for the combined project (Elizabeth and Blackdome), with mining beginning at the Blackdome deposit and subsequently at the Elizabeth deposit. All run of mine ore will be processed at the refurbished Blackdome processing plant. Total recovery of 94.5 percent gold and 77.6 percent silver from Blackdome ore, and 92.5percent gold from Elizabeth ore. The processing plant will recover gold and silver from both Elizabeth and Blackdome using gravity separation and flotation, producing dore and concentrate. Average annual gold production of approximately 23,505 ounces. Average life of mine cash operating costs of $686 per ounce. At US$950 per ounce of gold, US$15 per ounce of silver, and a 1.08 Canadian to US dollar exchange rate, pre-tax net present value (NPV) of $11,459,000 at a 10 percent discount rate, generating an internal rate of return (IRR) of 31 percent. Estimated start-up capital costs at Blackdome and Elizabeth of $11.4million and $9.4million, respectively, with a combined sustaining capital of $9.45million for the following six years.

The Preliminary Economic Assessment is preliminary in nature. It includes inferred mineral resources considered to be too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized. The Preliminary Economic Assessment is based predominantly on inferred resources, and the assumptions for the assessment are presented further in this release and in the technical report.

Blackdome mineral resources

Estimated mineral resources for the Blackdome deposit are presented in the table below.

Blackdome Mineral Resource Statement*, March 22, 2010

Grade Metal Resource Quantity
(tonnes)
Gold Silver Gold Silver category (g/t) (g/t) (oz) (oz) Indicated 144,500 11.29 50.01 52,600 232,300 Inferred 90,600 8.79 18.61 25,900 54,400 * Mineral resources are not mineral reserves and have no demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. Reported at a cut-off grade of 5.0g Au/t, assuming an underground mining scenario, a gold price of US$1,000 per ounce, and 100 percent metallurgical recovery. Modelled mined-out areas removed.

Elizabeth mineral resources

Estimated mineral resources for the Elizabeth deposit are presented in the table below.

Elizabeth Mineral Resource Statement*, June 8, 2009

Domain Quantity
(tonnes)
Grade gold
(g/t)
Metal gold
(oz)
Inferred mineral resources Southwest Vein 328,280 13.63 143,900 West Vein 194,563 9.95 62,239 Total inferred 522,800 12.3 206,100

* Mineral resources are not mineral reserves and have no demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. Reported at a cut-off grade of 5.0gAu/t, assuming an underground mining scenario, a gold price of US$1,000 per ounce, and 100percent metallurgical recovery.

Mining and production

Underground mine design for the Blackdome deposit was completed by Micon, and took into consideration historical mining to identify potentially minable resources. Twenty-three stopes have been found to be suitable for production with a mobile fleet. The following table presents the expected production from the Blackdome deposit.

Year -1 1 Total Days per year 120 365 485 Tonnes per day 50 200 Production (tonnes) 4,326 67,944 72,270 Waste development (tonnes) (capital) 14,679 17,786 32,465 Total muck (tonnes) 19,005 85,729 104,735 Mill feed (tonnes) 5,993 73,000 78,993

Underground mine design for the Elizabeth deposit was completed by JDS Energy and Mining Inc. Two mining methods are proposed: shrinkage, and sublevel long-hole stoping with unconsolidated (mined waste) fill. The following table presents the expected production profile for Elizabeth.

Parameter Unit Production year Total -1 1 2 3 4 5 6 7 8 Southwest Vein production t - 34,262 31,882 49,371 36,559 34,704 34,987 61,627 6,401 289,793 West Vein production t - 38,737 41,119 23,629 36,441 38,296 38,013 11,373 8,688 236,296 Total mine production t (dry) - 73,000 73,000 73,000 73,000 73,000 73,000 73,000 15,089 526,089 Daily production rate t/d (dry) - 200 200 200 200 200 200 200 201 200 Gold grade g/t - 9.51 10.41 11.83 10.37 10.91 9.36 9.26 8.75 10.19 Capital development m 2,173 856 405 211 - - - - - 3,645 Sustaining development m 799 988 678 533 183 100 100 - - 3,381 Total lateral development m 2,972 1,844 1,083 744 183 100 100 - - 7,026 m/d 8.1 5.1



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