BRITISH COLUMBIA - The preliminary economic assessment of the Bronson Slope gold-copper-silver deposit in the northwest corner of the province points toward a mining operation that may have a 38-year life, says owner Skyline Gold of Vancouver. The Bronson property is 400 metres uphill from the former Snip gold mine that produced 1.0 million oz of gold until its closure in 1999.
The PEA puts the internal rate of return at 21.5% and the net present value (7.5% discount) at $330.2 million after an initial outlay of $257.6 million. The payback period would be only 3.8 years. Undiscounted, the NPV rises to $1.4 billion.
Skyline says the PEA includes production of magnetite powder as well as gold, copper and silver. Mining would be by open pit with an in-pit crusher and conveyor system to a 15,000-t/d copper flotation and gravity gold plant. Costs are estimated at $3.21/t for mining, $6.33 for milling and $0.98 for overhead and administration. Life-of-mine costs would be for gold US$98/oz net of copper silver and magnetite credits. Measured and indicated resources are 186.9 million tonnes at 0.122% Cu, 0.360 g/t Au, 2.192 g/t Ag and 5.3% magnetite.
Visit www.SkylineGold.com for an aerial view of the Bronson Slope site and the latest corporate presentation.
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