YUKON – Copper North Mining Corp. of Vancouver says the preliminary economic assessment for the Carmacks Copper-gold-silver property is now available. The project lies 220 km north of Whitehorse near the southern end of the Dawson district.
The inclusion of gold and silver recovery in the flowsheet leads to the following economic parameters. The base case for Carmacks assume a copper price of US$2.50/lb, gold at US$1,300/oz and silver at US$17.50/oz. The pre-tax net present value (8% discount) would be C$11.9 million, and the internal rate of return 9.4%. Undiscounted and pre-tax the NPV would be $118.2 million and after tax $72.2 million. The project needs a preproduction injection of cash in the order of C$263.6 million and generate an annual net operating cash flow between C$39 million and C$79 million. The all-in sustaining cost of producing a pound of copper is estimated at US$1.16/lb.
Copper North says the project will be an open pit with oxide ore treated in an agitated leach and sold as cathode. After the copper is removed from solution, the remaining liquid will undergo cyanidation and carbon-in-leach to recover gold and silver that will be smelted into doré bars. Tailings will be filtered and dry stacked. The property also contains sulphide mineralization that has not yet been figured into production.
The in pit measured and indicated resource is 11.55 million tonnes averaging 0.977% Cu, 0.435 g/t Au and 4.34 g/t Ag. The oxide portion of the deposit contains 3.7 million measured and indicated tonnes grading 0.50% Cu, 0.132 g/t Au and 2.011 g/t Ag plus 800,000 inferred tonnes grading 0.42% Cu, 0.119 g/t Au and 1.910 g/t Ag. The sulphide mineralization contains 3.7 million measured and indicated tonnes grading 0.60% Cu, 0.128 g/t Au and 2.288 g/t Ag plus 4.4 million inferred tonnes grading 0.55% Cu, 0.123 g/t Au and 2.081 g/t Ag.
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