Vancouver — An independent feasibility study of the Doris North gold deposit on the Hope Bay project in Nunavut calls for a 668-tonne-per-day operation and production of 311,693 oz. gold over a mine life of two years.
“We believe Doris North provides potential for high-grade, high-return, and low-risk gold production commencing approximately two years from now,” says Anthony Walsh, president of
The study suggests that at a gold price of US$325 per oz., the mine could pull 467,157 tonnes daily grading 21.9 grams gold. Capital costs are pegged at US$39.3 million and cash operating costs, at US$109 per oz. The pretax rate of return on investment would be 136% with a payback period of 6.6 months.
A ramp would provide access to the underground operation, with mining focused on the Doris Hinge and portions of the Central and Lakeshore veins in the limbs of the Doris Hinge. Also, some 9,000 tonnes grading 19.5 grams gold stockpiled at the Boston deposit will be hauled to the mill for processing.
The study proposes a combination of mechanized cut-and-fill and open-stoping, assuming a minimum mining width of 2.5 metres and external dilution averaging 17% at zero grade. Ore would be hauled from underground by truck to a crusher adjacent to the portal, which would feed a modular mill.
Gold will be produced on site using conventional crushing and grinding with an integrated gravity gold recovery circuit followed by flotation and cyanidation of flotation concentrates.
Says Walsh: “This mine would be the first in Canada built on wholly Inuit-owned surface and mineral rights and so is a significant development in the region’s effort to encourage mining in the North.”
Long-term prospect
Since there are several other advanced prospects on the property, Miramar intends to develop the mine as a potentially long-term operation. For example, it intends to buy rather than rent the power plant and mining equipment. The company has also elected not to use contract mining. The mill has been designed for throughput of 800 tonnes per day.
Miramar intends to develop the Doris North area as a springboard for development of the additional resources already defined on the rest of the Hope Bay belt, says Walsh, who adds: “Our balance sheet is healthy and we’ve received strong expressions of interest for project financing should we elect to go that way.”
The most likely candidate for additional tonnage comes from the balance of the Doris deposit, primarily in the Doris Connector and Doris Central areas. Miramar will assess the potential for developing the Doris Central and Doris Connector areas, targeting production of approximately 250,000-300,000 oz. gold over three years at a cash costs of under US$200 per oz.
The mill and facilities are designed for a 10-year life and therefore allow for an extension of operations beyond the 2-year life of the Doris North zone.
Miramar expects permits to be in-hand by the third quarter, allowing construction to commence and major equipment to be ordered by year-end. Startup is planned for early 2005.
At last count, the Hope Bay project held measured and indicated resources of 3.4 million tonnes grading 15.4 grams gold, plus an inferred 6.7 million tonnes grading 12.3 grams gold. Looking to increase these numbers, the company aims to carry out 43,000 metres of core and 4,500 metres of reverse-circulation drilling this year.
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