GOLD: Feasibility study moves Kaminak’s Coffee project forward

YUKON – The feasibility study for the Coffee gold project 130 km south of Dawson City outlines a robust, rapid payback, high margin, open pit mine and heap leach. The project is 100% owned by Vancouver’s Kaminak Gold Corp. that intends to move the project forward. Using a gold price of US$1,150/oz and an exchange rate of C$1.00 to US$0.78, the study says the Coffee project can be expected to have an after tax net present value (5% discount) of C$455 million and an internal rate of return of 37%. It will take an initial capital commitment of C$317 million for development. Total life-of-mine sustaining capital costs are C$478 million, including $60 million for closure. About 480 permanent jobs will be created. The proposed mine will operate for at least 10 years. Annual gold production in the first five years will be more than 200,000 oz, and over the 10 year period it will average 184,000 oz/y. The all-in sustaining cost is estimated to be US$550 per oz of gold. A video corporate presentation by Kaminak president and CEO Eira Thomas may be viewed at Kaminak.com.