Cumberland Resources of Vancouver is going ahead with a full-scale feasibility study on its Meadowbank gold project. Announcement of the engineering firm chosen to conduct the study will be made next month. Cumberland holds interests in two gold projects in Nunavut: 100% of Meadowbank near Baker Lake and 22% of Meliadine West near Rankin Inlet.
Earlier this year a preliminary assessment for the Meadowbank project suggested a production rate of 246,000 oz Au annually would generate cash costs of US$168/oz over a mine life of 8.3 years. Capital cost of a 4,700 tonnes/day development might be in the neighbourhood of US$123 million. The property has five closely spaced deposits amenable to open pit mining. (A sixth one, the PDF deposit, was announced on Oct. 23.) With a total resource base of 3 million oz (960,000 oz in the proven and probable categories), Cumberland considers this one of Canada's most promising gold deposits. Grades vary, but are frequently in the 4- to 5-g/t range.
Cumberland's 2001 annual report may be read at www.goldmin.com