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YTC Resources eyes production at Hera-Nymagee gold project on completion of Hera DFS

YTC Resources (ASX: YTC) has ticked an important box by finalising the Definitive Feasibility Study (NYSE:DFS) on the Hera gold-base metal deposit as Stage 1 of the development of the company's Hera-Nymagee Project.

The Hera DFS, managed by Optiro Mining Consultants has delivered a robust outcome for the project, and confirms the technical and financial viability of the development of the Hera  deposit, producing gold-silver doré and a bulk lead-zinc concentrate.

More than $510 million revenue is forecast to be generated in Stage 1 based on A$1,450 gold price. A C1 operating cost of A$395 per ounce has been estimated (after lead- zinc credits).

Average annual production is expected to exceed 50,000 gold equivalent ounces over life of mine. A maiden Ore Reserve of 423,471 gold equivalent ounces at average grade of 7g/t gold equivalent is forecast.

A minimum 7.3 year mine life is expected with production of over 390,000 ounces (gold equivalent) with a life of mine gold recovery of 94%.

Pre-production capital expenditure is forecast at $73.5 million with Net Operating Profit (pre-tax) of: $95 million ($A1,450 gold price) or $152 million (A$1,750 gold price). There is a modular plant design capable of expansion to treat Nymagee ore in Stage 2.

Aggressive drilling at Nymagee is moving to a maiden Nymagee Resource in fourth quarter 2011 to enable commencement of Stage 2 mining and processing studies.

Rimas Kairaitis, YTC's CEO, said "YTC is very pleased with the results of the DFS, and looks forward to commencing the transition from explorer to developer at the Hera-Nymagee Project, whilst simultaneously continuing to aggressively explore our highly prospective tenement package in the Cobar Basin.

"The recent discoveries at Nymagee have clearly demonstrated the enormous potential for our ground to host world-class deposits."

About Hera-Nymagee Project

The project consists of the Hera gold-lead-zinc deposit and the Nymagee copper deposit located only 4.5 kilometres apart within the company's tenements in the Cobar Basin of New South Wales, which have total prospective strike length of 25 kilometres.

Stage 1 development will see the establishment of the Hera gold mine and construction of a processing facility at the Hera site. Feasibility studies are progressing on Stage 2 to evaluate the integration of the Nymagee deposit utilising Stage 1 infrastructure.

YTC has adopted a two-stage approach to developing the Hera-Nymagee Project to fast track first gold revenue and to establish mining and process infrastructure with a view to self-funding the development and integration of the larger Nymagee deposit.

The Hera gold–base metal deposit is hosted in Cobar Basin rocks which also host the world-class mineral deposits at CSA, The Peak and Endeavor.

In October 2010, YTC announced the expansion of the Hera Definitive Feasibility Study to accommodate the recent discovery of high grade copper mineralisation at the Nymagee Copper Deposit, and the discovery of additional high grade gold-lead-zinc mineralisation within the Hera Far West Lens.

Once established, the Hera mine will substantially provide the mining and process infrastructure to support the future integration of mineralisation from the Nymagee Copper deposit.