YUKON – The Wolverine silver-zinc deposit could be developed as an underground mine, according to the feasibility study prepared by HATCH for owner YUKON ZINC CORP. of Vancouver. The property is located in the Finalyson District, which is home to large massive sulphide deposits.
The feasibility study estimates a capital investment of $155.7 million. A 10-year operation would be developed, producing 33,342 tonnes of zinc, 3,577 tonnes of copper, 3,399 tonnes of lead, 3.8 million oz of silver and 16,043 oz of gold in each of its first three years. Operating costs per tonne mined would be $90.26, with corresponding life-of-mine cash costs for zinc of US$0.18.lb after byproduct credits.
The Wolverine property is located 195 km northwest of Watson Lake. Proven and probable reserves are 5.21 million tonnes grading 9.71% Zn and 284.2 g/t Ag. It contains a measured and indicated resource of 4.46 million tonnes grading 12.14% Zn and 354.6 g/t Ag. The inferred resource is 1.69 million tonnes at 12.16% Zn and 385.4 g/t Ag. The metals are recoverable in concentrates using conventional flotation techniques.
The property lies within the traditional territory of the Ross River Dena Council, with whom Yukon Zinc completed a socio-economic participation agreement in July 2005.
Additional details from the feasibility study are available in the May 9 press release posted at www.YukonZinc.com.