Feasibility augurs well for Red Chris

Vancouver — BcMetals (C-T) is encouraged by the results of an independent feasibility study of the Red Chris project in northwestern British Columbia.

The study, by AMEC E&C, calls for development of an open-pit mine and mill.

The proposed operation would produce 30,000 tonnes per day over a mine life of 25 years. Over the first 17 years, the mining rate would be nearly 11 million tonnes per year at a stripping ratio of 2.3:1. In the remaining eight years, low-grade ore would be processed from a stockpile.

The project would produce a total of 1.8 billion lbs. copper and 1.2 million oz. gold in concentrate. The concentrate would be moved by rail to the seaside port of Stewart for shipment to smelters and refineries in the Pacific Rim.

Minable reserves are pegged at 185.4 million tonnes grading 0.414% copper and 0.325 gram gold per tonne. After recovery of stockpiled material, total reserves are estimated to be 276 million tonnes at 0.349% copper and 0.266 gram gold, containing 2,123 million lbs. copper and 2,361,777 oz. gold in situ.

Mine-site production costs during the first five years are expected to average US30 per lb. copper, net of gold credits, and US$6.95 per tonne milled.

Construction of a 23-km access road to Hwy. 37 and construction of a 175-man camp are included in the capital cost, which is estimated at $228.5 million.

The internal rate of return is 17.5% with a payback of less than five years. The base case was calculated using copper prices of US$1.10 per lb., a gold price of US$375 per oz., and a silver price of US$5.50 per oz.

Plans call for semi-autogenous grinding, flotation, regrinding, thickening and filtering. This process will produce a copper concentrate grading 27% copper and 12.7 grams gold per tonne on average for the first five years.

The British Columbia government is considering whether to finance the 138-kV powerline along a new road.

The economics of the proposed mine were assessed using conventional recovery methods. BcMetals is also considering using Outokumpu Technology’s hydrometallurgical process to recover copper and gold from sulphide ores and produce copper on-site. The $90-million estimated price tag for the plant could be offset by savings incurred by producing on-site, as storing and transportation would not be required.

BcMetals will conduct bench-scale testing on 24 tonnes of drill core at the research facility in Finland.

BcMetals became the sole owner of the project earlier this year. The company owns 10.7 million shares, or 52.3%, of American Bullion Minerals, the former owner. American Bullion has a 30% reversionary carried ownership interest, which becomes effective after bcMetals recovers all its costs from production. The Red Chris property is also subject to a 1.8% net smelter return royalty held by Falconbridge (FL-T).