DAILY NEWS Feb 6, 2013 3:59 PM - 0 comments

COPPER-GOLD: Kwanika project shows $263 million NPV

TEXT SIZE bigger text smaller text
2013-02-06

BRITISH COLUMBIA – The preliminary economic assessment for the Kwanika copper-gold project of Vancouver's Serengeti Resources found a pre-tax net present value (5% discount) of $263 million and a 13.4% internal rate of return. The porphyry project, located in the Quesnel Trough, would have a mine life of 13.5 years.

The Kwanika project requires an initial capital injection of $364 million plus sustaining capital of $144 million over its life. An open pit and an underground mine are envisioned to supply a 15,000 t/d concentrator. Life-of-mine output would total 545 million lb of copper, 489,000 oz of gold, 2.45 million oz of silver, and 5.25 million lb of molybdenum.

Serengeti said the PEA focused on a higher grade core of the deposit. Resources were given for two pitable zones and two underground zones. The Central pit zone has 19.90 million indicated tonnes at 0.330% Cu and 0.281 g/t Au, plus 900,000 inferred tonnes at 0.332% Cu and 0.207. The South open pit zone has an inferred resource of 25.07 million tonnes grading 0.324% Cu and 0.120 g/t Au. The first underground zone has an indicated resource of 19.92 million tonnes grading 0.456% Cu and 0.467 g/t Au and an inferred resources of 50,000 tonnes at 0.332% Cu and 0.418 g/t. The second underground zone has 7.82 million indicated tonnes at 0.472% Cu and 0.470 g/t Au. The only molybdenum encountered during drilling was in the South zone inferred resource and assayed 0.016% Mo.

Serengeti has identified several opportunities to optimize the Kwanika project, and will undoubtedly examine these. The company website is at SerengetiResources.com.



Horizontal ruler
Horizontal Ruler

Post A Comment

Disclaimer
Note: By submitting your comments you acknowledge that Canadian Mining Journal has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that due to the volume of e-mails we receive, not all comments will be published and those that are published will not be edited. However, all will be carefully read, considered and appreciated.

Your Name (this will appear with your post) *

Email Address (will not be published) *

Comments *



* mandatory fields