HIRU Corporation (HIRU) Announces Feasibility Scoping Study for Balfour Project, Tasmania

Rhea-AI Summary

HIRU (OTC Pink: HIRU) has announced a Feasibility Scoping Study for its Balfour Copper Project in northwestern Tasmania, Australia. The study outlines a 10-year initial plan to process 500,000 tonnes of ore annually, producing 50,000 tonnes of copper concentrate. The project's pre-production capital is estimated at USD $78 million, including $60 million for infrastructure and $18 million for initial operational expenses.

The project is expected to generate positive cash flow in Year 1, with projected revenues of USD $33.80 million, growing to USD $42.81 million by Year 10. The Balfour Project has significant expansion potential beyond the initial plan, with 110 known deposits along the 70-kilometer tenement strike. The project benefits from existing infrastructure in Tasmania and offers potential for additional revenue from gold and silver by-products.

Positive

• Project expected to generate positive cash flow in Year 1
• Projected revenue growth from $33.80 million in Year 1 to $42.81 million by Year 10
• Significant expansion potential with 110 known deposits along 70-kilometer tenement strike
• Potential for additional revenue from gold and silver by-products
• Existing infrastructure in Tasmania helps minimize additional capital expenditures

Negative

• High pre-production capital requirement of USD $78 million
• Initial 10-year plan only utilizes a portion of the tenement
• Potential delays in copper sales during the initial start-up phase

Toronto, Ontario--(Newsfile Corp. - October 11, 2024) - HIRU Corporation (OTC Pink: HIRU) $HIRU www.otchiru.com, www.hirumining.com is pleased to share with its shareholders and followers a comprehensive Feasibility Scoping Study for the Balfour Copper Project located in northwestern Tasmania, Australia. This study outlines the initial operational and financial parameters, providing a clear path forward for the project's development.

Operational Overview

The Balfour Project is structured to be highly scalable, with substantial expansion potential beyond the initial 10-year plan. The first phase of the project will focus on processing 500,000 tonnes of ore per year, yielding 50,000 tonnes of copper concentrate. This marks just the beginning, with additional resources expected to be discovered as exploration continues along the 70-kilometer strike of the Balfour tenement.

The project is underpinned by a JORC-compliant resource at Murry's Reward, which serves as the foundation for future growth. The broader resource potential within the tenement provides significant upside, positioning the Balfour Project for long-term development.

Capital Requirements

The estimated pre-production capital for the project is USD $78 million, allocated as follows:

• Site Infrastructure (Road work, Site Office): USD $10 million
• Processing Facilities: USD $20 million
• Water Management: USD $5 million
• Open Pit Development (including drilling): USD $15 million
• Contingency (20%): USD $10 million
• OPEX for the First 6 Months of Operations: USD $18 million

The additional USD $18 million in operational expenses is a contingency to cover potential delays in copper sales during the initial start-up phase. This buffer ensures the project's smooth operation during its first months and provides a safeguard against unforeseen circumstances.

Financial Projections

Once operations commence, the Balfour Project is projected to generate positive cash flow in Year 1, with expected revenues of USD $33.80 million. This figure is expected to grow to USD $42.81 million by Year 10, based on early-stage production from a limited portion of the tenement.

The true strength of the Balfour Project lies in its scalability. As more resources are discovered and developed along the tenement, production can expand significantly, ensuring long-term profitability. The project also benefits from existing infrastructure in Tasmania, such as roads, ports, and power supplies, which helps minimize additional capital expenditures.

Future Potential

With 110 known deposits along the tenement and ample room for future exploration, the Balfour Project has the potential to support mining operations well beyond the initial 10-year Life of Mine (LOM) estimate presented in this study. Furthermore, the potential for by-products such as gold and silver offers additional revenue streams, providing flexibility and a hedge against copper price volatility.

Hiru Corporation is excited about the future prospects of the Balfour Project and remains committed to delivering long-term value for its shareholders.

More news filings and regular routine updates will follow in a timely manner.

About Hiru Corporation:

Hiru Corporation (OTC Pink: HIRU) is a mining company headquartered in Toronto, Canada, with a focus on copper and other essential metals. The company's flagship operation, the Balfour Project, is located in north-western Tasmania, Australia. Hiru is committed to ethical mining practices and is actively exploring new opportunities in resource-rich regions across the globe.

Disclaimer Regarding Forward-Looking Statements

Certain statements that we make may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, acquisitions and divestitures, anticipated results of litigation and regulatory developments or general economic conditions.  In addition, words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "projects," "forecasts," and future or conditional verbs such as "will," "may," "could," "should," and "would," as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions.  Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements.

Contact:
Corporate Communications
Irina Veselinovic (Secretary)
Website: www.otchiru.com & www.hirumining.com
Email: corporate@otchiru.com
Phone: +1 954-228-1053
Twitter: https://twitter.com/hirumining
LinkedIn: https://www.linkedin.com/company/hiru-corporation/

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/226365

FAQ

What is the annual production capacity of HIRU's Balfour Copper Project?

The Balfour Copper Project's initial plan is to process 500,000 tonnes of ore per year, yielding 50,000 tonnes of copper concentrate annually.

How much pre-production capital is required for HIRU's Balfour Project?

The estimated pre-production capital for HIRU's Balfour Project is USD $78 million, which includes $60 million for infrastructure and $18 million for initial operational expenses.

When is HIRU's Balfour Project expected to generate positive cash flow?

HIRU's Balfour Project is projected to generate positive cash flow in Year 1 of operations, with expected revenues of USD $33.80 million.

What is the projected revenue growth for HIRU's Balfour Project by Year 10?

HIRU's Balfour Project is expected to grow its revenue to USD $42.81 million by Year 10 of operations.