BRITISH COLUMBIA — Vancouver's Terrane Metals has received an updated feasibility study that increases gold reserves by 31% at its Mt. Milligan project to 6.0 million oz. The same study puts copper reserves at 2.1 billion lb. The property, 155 km northwest of Prince George, BC, has proven and probable reserves of 482.0 million tonnes averaging 0.20% Cu and 0.39 g/t Au.
The mineral resource estimate includes 706.7 million tonnes grading 0.182% Cu and 0.330 g/t Au in the measured and indicated categories. The inferred resource is another 20.5 million tonnes at 0.154% Cu and 0.205 g/t Au. The ore is recoverable by open pit mining. During the first six years of operation, the mine and mill will produce 89.0 million lb of copper and 262,100 oz of gold annually.
The updated study indicates the Mt. Milligan mine could have a life of 22 years, 45% longer than the previous feasibility study done in 2008. Capital costs estimates remain steady at $915 million, which would be recouped after 4.1 years of operation. The pre-tax internal rate of return would be 17.2% based on a net present value of $1.05 billion.
The Mt. Milligan project is in the final stages of regulatory approval. Learn more at www.TerraneMetals.com.