Positive feasiblity study for Red Chris

Vancouver – bcMetals (C-V) has reported a positive feasibility study for its Red Chris copper gold project in northern British Columbia. The independent study overseen by AMEC looks at the development of a large-scale open-pit mining and milling operation.

The planned operation has a life of 25 years at a milling rate of 30,000 tonnes per day. The mining rate would be nearly 11 million tonnes per year over the first 17 years at an average stripping ratio of 2.3:1.

Low-grade ore recovered from the stockpile would be processed for the remaining eight years of the mine’s life.

Minable reserves are estimated at 185.4 million tonnes at 0.414% copper and 0.325 gram gold per tonne. After recovery of stockpiled material, total reserves are estimated at 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.

The project will produce a total of 1.85 billion lbs. copper and 1,187,000 oz. of gold contained in concentrate.<

During the three-month preproduction period some 5 million tonnes of waste and low-grade material will be mined.

Mine-site production costs during the first five years average 30 U.S. cents per lb. copper net of gold credits, and $6.95 per tonne milled.The project’s internal rate of return is 17.5% and payback is less than 5 years for the base case which was calculated on copper prices of US$1.10 per lb., a gold price of US$375 and silver at US$5.50 per oz. An exchange rate of 1.33 was used for the U.S. dollar.

For comparative purposes the company used current metal prices and U.S. exchange rate to show the project IRR would be 30.1%.

Capital costs include a 23-km access road from highway 37 which will need to be constructed to the mine as well as a 138 kilo-volt power line to connect with B.C. Hydro’s grid along the road.