YUKON - SHERWOOD COPPER of Vancouver has revised its feasibility study of the Minto copper-gold project 240 km north of Whitehorse. The changes include an optimized mine plan, the refurbishment plan for the port of Skagway, Alaska, and recent changes in Canadian tax law.
Re-evaluation of the project has resulted in several key changes (with original figures in parentheses for comparison). Cash costs have been lowered to US$0.57/lb of copper (US$0.60) net of byproduct credits during the first six years of operations and US$0.60/lb (US$0.73) over the life of the mine. The estimate of operating cash flow has been cut to Cdn$49 million (Cdn$51 million) during the first year of operation due to mine plan changes and the conversion of the port costs to sustaining capital. Mine life has been shortened to 7.2 years (10.6 years). During that time, production is targeted to be 269 million lb of copper (300 million lb), 113,000 oz of gold (122,000 oz) and 1.6 million oz of silver (1.8 million oz). The Minto project is expected to pay for itself in 2.4 years (2.5 years).
Mineral reserves have been recalculated using a 0.62% copper cut-off rather than the 0.5% used previously. Proven and probable reserves are now estimated to be 5.87 million tonnes grading 2.02% Cu, 0.80 g/t Au and 9.1 g/t Ag.
Further examination and optimization of the project continues. See www.SherwoodCopper.com.