Perhaps the rainbow at the Spectrum-GJ project has a pot of gold at one end and a pot of copper at the other.
BRITISH COLUMBIA – Vancouver-based Skeena Resources has the results of the preliminary economic assessment for the Spectrum-GJ copper-gold project in the northwest part of the province. A project life of at least 25 years is projected.
The PEA considers two porphyry deposits – Donnelly and Spectrum Central. The Donnelly deposit contains indicated resources of 215.2 million tonnes grading 0.31 g/t gold, 0.26% Cu and containing 2.14 million oz. of gold and 1.24 billion lb. of copper (at a copper equivalent cut-off of 0.15%). As well there are 28.3 million inferred tonnes grading 0.31 g/t gold and 0.14% copper. The Spectrum Central deposit contains indicated resources of 31.2 million tonnes grading 0.94 g/t gold and 0.10% copper and containing 940,000 oz. of gold and 67.6 million lb. of copper (at a gold equivalent cut-off of 0.40 g/t). The inferred portion is 29.8 million tonnes at 0.47 g/t gold and 0.12% copper.
Preproduction capital costs are estimated to total C$216.05 million including C$66.50 million for the concentrator and C$35.13 million to prepare the Donnelly pit. Sustaining capital would be $362.15 million including $26.82 million for the Spectrum pit, $107.76 million at Donnelly, and a further $103.31 million at the mineral processing plant.
Skeena says the Spectrum-GJ PEA used a copper price of US$2.75/lb, a gold price of US$1,250/oz., and a silver price of US$17.75/oz. Pre-tax the net present value of the project is C$546.18 million (8% discount), the internal rate of return is 26.6%, and carries a payback period of 3.81 years. After tax the NPV (8%) is C$314.09 million, the IRR 20.6%, and the payback 4.21 years.
Read the PEA at www.SkeenaResources.com when it is posted or at SEDAR.