Afton project at prefeasibility

Vancouver-based DRC Resources (DRC-T) raised $21 million last fall to develop its Afton copper-gold project near Kamloops to the feasibility stage.

Previous drilling outlined a wide feeder zone below and southwest of the Afton open pit. The mineralized zone is a steeply dipping body 365 metres long and 76 metres wide on average. It extends to at least 300 metres below the pit bottom.

Consulting firm Behre Dolbear’s scoping study found that the Afton project has favourable economics. Its initial capital costs were estimated at $140 million. Its undiscounted net present value was $413 million and the pre-tax rate of return was 26.9%.

Measured and indicated resources total 68.7 million tonnes grading 1.68% copper equivalent for 1.64 million lbs. copper and 1.87 million oz. contained gold at a 0.70% copper equivalent cutoff. Inferred resources total 7.45 million tonnes grading 1.48% copper equivalent for 151.8 million lbs. copper and 188,000 oz. contained gold.

The Afton property includes two open-pit mines that had produced more than 450,000 oz. gold and some 250,000 tons copper between 1977 and 1988.