Vancouver bcMetals‘ (C-V) wholly owned subsidiary, Red Chris Development is seeking equity partners to pay for the development and mining of its Red Chris porphyry copper-gold deposit in northwestern B.C., estimated to cost over $225 million.
The company is offering to sell up to 45% ownership interest in the Red Chris project to First Nations, smelters and concentrate buyers.
Red Chris Development will retain at least 55% ownership interest in the project and wants to continue as operator.
For their part, each concentrate buyer must purchase at least 10% ownership in the project.
A feasibility study by engineering firm, AMEC last year, envisions an open pit mine and 30,000 tonne per day concentrator plant at Red Chris.Construction of a 23-km access road to Hwy. 37 and construction of a 175-man camp are included in the capital cost, which is estimated at $228.5 million.
The internal rate of return is 17.5% with a payback of less than five years. The base case was calculated using copper prices of US$1.10 per lb., a gold price of US$375 per oz., and a silver price of US$5.50 per oz.
The project is estimated to produce 180,000 tonnes of copper-gold concentrate per year. The company notes that Red Chris concentrate is high quality with 27% copper, 12-16 grams gold per tonne and very low levels of lead, zinc and arsenic.
The British Columbia government was considering whether to finance the 138-kV powerline along a new road.
The company anticipates receiving its environmental certificate and construction permits before the end of July.
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