BRITISH COLUMBIA – Capstone Mining of Vancouver says the preliminary feasibility study (PFS) for the Kutcho copper-zinc project 120 km east of Dease Lake suggests building a 2,500-t/d mining and milling operation at a cost of $187.3 million. The project will be primarily an underground operation, and the mill will produce separate copper and zinc concentrates with byproduct gold and silver in the copper conc.
The Kutcho project is based on two deposits, the larger Main and smaller Esso. Together they host probable reserves of 10.4 million tonnes grading 2.01% Cu, 3.19% Zn, 34.61 g/t Ag and 0.37 g/t Au. The reserves are contained within 11.3 million tonnes of measured and indicated resources. The PFS does not include another 1.1 million tonnes of inferred resources in the mining plan.
Capstone expects average annual production during the full production period of 34.7 million lb of copper, 54.5 million lb of zinc, 4,664 oz of gold and 671,800 oz of silver in concentrates. Total cash costs are estimated at US$0.75/lb of payable copper, net of byproduct credits and including selling costs.
The next steps will be to being the environmental permitting process and initiate discussions with First Nations groups.
Follow developments at www.CapstoneMining.com.