BRITISH COLUMBIA – Gold Reach Resources of Vancouver says the preliminary economic assessment for the Oosta copper-gold-molybdenum project adjacent to the Huckleberry mine and mill, 120 km south of Houston, points toward development of a low cost producer.
With an initial capex investment of C$64 million including contingency, three sequential pits could be contract mined followed by toll milling for a period of 12 years. The project will generate a base case after tax net present value of $186 million and an internal rate of return of 81%.
The base case assumes metal prices of US$3.00/lb for copper, US$1,250/oz for gold, US$10.30/lb for moly, and US$17/oz for silver. All-in sustaining costs per lb of copper are estimated to be US$2.09.
Gold Reach anticipates that engineering, environmental studies and permitting of the Ootsa project would take three to four years. Securing a toll milling contract may be problematic as the adjacent Huckleberry mill is due to be closed at the end of August 2016.
If a lack of toll milling facilities slows the Ootsa project, the resources will remain in the ground. The three deposits have total measured and indicated material of 224.2 million tonnes with a copper equivalent of 0.37% plus an inferred resource of 5.2 million tonnes at 0.30% CuEq. The M&I portion is estimated to contain 1.11 billion lb of copper, 1.1 million oz of gold, 104.0 million lb of molybdenum, and 20.4 million oz of silver.
More information is posted at GoldReachResources.com.