Making plans for Davidson moly deposit

Toronto-based Thompson Creek Metals, operator of the Endako molybdenum mine near Fraser Lake, B. C., has completed a feasibility study for development of its Davidson moly deposit near Smithers, B. C. After a capital investment of Cdn$109 million, a mine would produce 4 million lb of molybdenum annually for 10 years. Average annual cash costs are estimated to be US$9.46/lb of molybdenum.

An underground mine is planned, producing 2,000 tonnes/day of ore. The ore will be trucked 200 km to the Endako mill for processing. The deposit contains 7.3 million tonnes of proven and probable reserves plus 500,000 tonnes of low-grade material that will be mined over 12 years. The ore grades 0.265% Mo.

Thompson Creek hopes to have its mining permits in hand by November 2008. Production could then begin in August 2009 and reach the 2,000-tonne/day mark in April 2010.

Sojitz Corp., which is a 25% partner in the Endako mine, has approved expansion plans at that site including a boost in mill capacity to 50,000 tonnes/day beginning in 2010 from the current level of 28,000 tonnes/day. Thompson Creek and Sojitz will share proportionally in the Cdn$373.6-million cost.