Positive test work at Casino (September 04, 1995)

Metallurgical tests on the Casino copper-gold project in the Yukon is returning positive results for owner Pacific Sentinel Gold (VSE).

The company is developing an open-pit mine and mill operation at the property, which contains an estimated 196 million tons grading 0.303% copper and 0.028% molybdenum, as well as 0.011 oz. gold per ton.

The deposit has not been eroded by glaciation and, as a result, consists of an oxidized cap overlying supergene and hypogene sulphide zones.

The oxidized cap overlying the reserves measures about 55.8 million tons, and plans call for pre-stripping and stockpiling the tonnage. The stripping ratio for the remaining hypogene and supergene reserve is estimated at 1.06-to-1.

Pacific Sentinel reports that extensive metallurgical testing indicates that conventional flotation of the supergene and hypogene ores will achieve recoveries of 72% for gold, 80% for copper and 62% for molybdenum.

The copper concentrate should grade about 21% copper and 0.69 oz. gold while the molybdenum concentrate is expected to grade 53% molybdenum.

Pacific Sentinel estimates the net smelter return at US$14.85, based on US$1.20-per-lb.

copper, US$395-per-oz. gold, US$7-per-lb. molybdenum, a 0.74 exchange rate and standard treatment and transport charges.

Based on a 27,500 ton-per-day milling operation, annual output will average 48 million lb. copper, 3.5 million lb. molybdenum and 79,400 oz. gold over the 19-year reserve life. Head grades during the first six years are expected to average 0.392% copper, 0.028% molybdenum and 0.013 oz. gold, netting 68 million lb. of copper and 98,000 oz. of gold per year.

Pacific Sentinel is conducting a prefeasibility test and preparing a mine development application for permitting authorities.