Vancouver — Buoyant gold and copper prices contributed to stronger earnings for
The Vancouver-based junior turned a profit of US$10 million (or 5 per share).
The Kemess mine, in north-central British Columbia, delivered 79,311 oz. gold and 18.7 million lbs. copper, compared with 84,132 oz. and 17.3 million lbs. a year earlier.
The net cash cost of bullion produced at the mine was US$129 per oz. in the recent 3-month period — significantly lower than the US$201 per oz. of a year earlier. Kemess is expected to produce 300,000 oz. gold and more than 75 million lbs. copper in 2004.
Drilling in and around the Kemess South pit has added 11.8 million tonnes of ore grading 0.414 gram gold per tonne and 0.147% copper to reserves, and the pit had been redesigned.
Meanwhile, a recent feasibility study of the Kemess North project indicates profitability. The study proposes startup in late 2006 and a mine life of 13 years.
The study recommends boosting the daily milling capacity to 96,000 from 86,000 tonnes, which would require an initial capital investment of US$190 million. Ore from the South and North deposits would be blended together.
Average cash costs for Kemess North are pegged at US$180 per oz. Once Kemess South is depleted, cash costs drop to US$110 per oz. The feasibility suggests that 2.6 million oz. gold and 1.3 billion lbs. copper can be produced from Kemess North. Proven minable reserves at the deposit are 282 million tonnes grading 0.306 gram gold and 0.159% copper. Probable reserves stand at 132 million tonnes grading 0.31 gram gold and 0.16% copper.
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