SASKATCHEWAN – Foran Mining Corp. of Vancouver has released a positive preliminary economic assessment for a proposed underground mine at the McIlvenna Bay copper-zinc deposit 60 km west of Flin Flon, MB. The report was prepared by JDS Energy & Mining.
The PEA examines a 5,000-t/d mine and concentrator with a 14-year mine life. Pre-production capital cost would be $249 million, followed by a sustaining capital requirement of $150 million (including a 20% contingency).
The McIlvenna Bay resource includes 13.9 million indicated tonnes grading 1.28% Cu, 2.67% Zn, 0.49 g/t Au and 17.00 g/t Ag. The inferred portion is 11.3 million tonnes at 1.32% Cu, 2.97% Zn, 0.43 g/t Au and 17.00 g/t Ag. The deposit is open at depth.
Average annual production would be 58.9 million lb of zinc, 37.6 million lb of copper, plus 16,000 oz of gold and 398,000 oz of silver. Cash costs of production net of by-product credits are estimated at —$0.37/lb of zinc or $0.84/lb of copper. The PEA assumes concentrates would be transported to any smelter in North America for treatment.
Foran says the McIlvenna Bay project has a pre-tax net present value at a 7% discount of $382 million ($263 million after tax) and an internal rate of return of 22% pre-tax (19% after tax).
Additional information about McIlvenna Bay is available at ForanMining.com