NUNAVUT – CUMBERLAND RESOURCES of Vancouver has received the project certificate for its Meadowbank gold project 70 km north of Baker Lake. Getting the certificate marks the completion of the impact review process, and the company can now apply for the ancillary permits and licences needed for construction. The next step is to begin building the road from Baker Lake to the mine site.
The Meadowbank property contains four closely spaced, near-surface gold deposits. The proven and probable reserve base is 21.3 million t grading 4.2 g/t Au, or 2.9 million contained ounces. Preproduction capital costs are pegged at US$235 million to develop an open pit and mill with a life of 8.1 years. During the first four years, the project will produce 400,000 oz/year at a cost of US$175/oz. The remaining four years will have average production of 330,000 oz at US$201/oz. Gold production is expected to begin in late 2008 or early 2009.
A drawing of how the pits will look during production is available at www.CumberlandResources.com in the Geology section of the Meadowbank project description.