Montreal-based MSV Resources (MSY-T) has raised $40 million to develop the Copper Rand 5000 project in the Chibougamau camp of northern Quebec.
The financing consists of a $30-million loan from a major bank and $10 million of convertible debentures issued to seven Quebec financial institutions.
Development work will entail deepening the No. 4 shaft to the 5000 from the 4000 level, as well as excavating a haulage drift at this level.
The processing plant has a daily capacity of 2,700 tons.
Based on a copper price of US$1.05 per lb., a gold price of US$340 per oz., a silver price of US$5 per oz. and a U.S. dollar exchange rate of $1.39, the Copper Rand 5000 project is expected to generate a 17.5% return on investment. This projection is, in turn, based on reserves of 2.2 million tonnes grading 1.72% copper and 3.7 grams gold per tonne.
The deposit, which remains open on its eastern side, has an estimated life span of 4.7 years, though several factors suggest this could be expanded.
For example, MSV says there is a possibility of extending the workings toward the Cedar Bay mine, which lies 1 km west of Copper Rand.
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