NORTHWEST TERRITORIES – Seabridge Gold of Toronto says the preliminary feasibility study for its Courageous Lake project 240 km northeast of Yellowknife estimates contained gold to be 6.5 million oz. It predicts average annual production at 385,000 oz over a 15-year life. The PFS was prepared by Tetra Tech Wardrop.
The Courageous Lake PFS is based on a single open pit mine with a 17,500-t/d mill on site. The proven and probable reserves total 91.1 million tonnes grading 2.20 g/t Au. Cash operating costs will be about US$780/oz. Pre-production capital costs will be US$1.52 billion, including a contingency of US$187 million.
Seabridge said there are opportunities to improve the project economics. The PFS outlined a combined diesel and wind powered generating system, but if a suitable nearby source of hydroelectric power could be found, costs would be reduced. Rather than relying on a winter road, a permanent, all weather road to Bathurst Inlet would be a more economic choice for moving supplies to the mine.
An executive summary of the PFS is available at SeabridgeGold.net/CL_ExecSum_2012.pdf.