DRC tables positive study

Vancouver — An independent consultant estimates that DRC Resources‘ (DRC-V) past-producing Afton copper-gold property still holds an indicated mineral resource of 25 million tons averaging 2% copper and 0.045 oz. gold per tonne. The project is near Kamloops, B.C.

The estimate is based on 18 drill holes. Vancouver-based Behre Dolbear & Co. also completed a scoping study that indicates positive economics for the project. The study utilized block-caving at the rate of 4,500 tons per day. Total production costs over the life of the mine are pegged at $22.19 per ton. The early-stage scenario would generate an internal rate of return of 32.3%.

Preliminary metallurgical tests show recovery rates of 89% for copper and 90% for gold, using standard flotation.

A feasibility study needs to be completed to determine the extent to which the project is economic.

DRC can earn a 100% interest in the 6-sq.-km property from Westridge Enterprises and Indo-Gold Development by issuing 2 million shares over six years and spending $6.5 million on exploration over nine years. To retain its 100% interest, DRC must bring the property into production within 10 years.

The Afton mine started production in 1978. It cranked out 450,000 oz. gold and 45 million tons copper before being permanently closed by Afton Mines, a subsidiary of Teck (tek-t), in May 1997. The remaining resource, at the time of the mine’s closure, was pegged at 10.5 million tons averaging 1.52% copper and 0.03 oz. gold.