TSE raps knuckles of Cumberland, Comaplex

Regulatory concern has prompted Cumberland Resources (CBD-T) and Comaplex Minerals (CMF-T) to clarify information pertaining to an independent scoping study of the Meliadine West gold project, 20 km north of Rankin Inlet, N.W.T.

The study, which was completed by H.A. Simons for project operator WMC International, concluded that Meliadine could yield 400,000 oz. gold per year at $167 per oz. over a mine life of 10 years. A daily milling rate of 3,750 tonnes and a mill recovery rate of 94% were employed.

The partners have since stated that the study incorporates an unsubstantiated resource of 4.5 million tonnes grading 10.6 grams gold, with an indicated resource of 9.8 million tonnes of 10.52 grams in the Tiriruniak and F zones. These new resources are expected to come either by way of extending existing deposits — the Tiriruniak zone remains open at depth — or outlining new ones.

However, Comaplex states that “there is no certainty that the zone [Tiriruniak] will continue or that further resources will be found in yet-to-be-identified areas.” The company adds that more work is needed to boost the known resources to the measured [proven] category and that, should no other resources be found, the project’s economics would change.

Cumberland initially justified the inclusion of the unsubstantiated resource by stating that, “It is considered by WMC that the potential for discovery of further resources on the property justifies this, and a 38,000-metre drill program is under way.” Like Comaplex, the company has since stated that the study’s projections are dependent on such resources being outlined.

Cumberland has also specified that its portion of the project’s US$130.9-million net previous value is US$28.8 million. A gold price of US$300 per oz., a 93% gold recovery and a discount rate of 5% were used in H.A. Simons’ financial model, giving a payback period for capital of 3.2 years.

At the time of the study’s completion, more than 50,000 metres of diamond drilling had been completed. Close to 75% of this had been focused on the Tiriruniak, F, Wolf and Pump zones. These structures are now collectively referred to as the Wesmeg portion of the project.

WMC International, a subsidiary of Australian-based major Western Mining Corp., has a 56% interest in the Meliadine West property. The remainder is divided evenly between Cumberland and Comaplex.