(TSX: YRB) has announced a new resource estimate and preliminary economic assessment (PEA) for its 100% owned Scott Lake polymetallic project in the Chibougamau area of Quebec.
Scott Lake’s 63.37 sq. km includes 18 km in length of the same felsic rocks from the Waconichi formation that host the past producing high grade Lemoine mine, located about 40 km to southeast. Strong hydrothermal alteration and disseminated sulphides indicate a possible volcanogenic massive sulphide ore deposit.
The PEA pegs pre-production capital expenditure at $215 million with sustaining costs at $113.2 million and operating costs at $89 per tonne. It has a pre-tax internal rate, or return, of 16.5% with a six year payback period, as well as a pre-tax net present value of $144 million at an 8% discount rate.
The project has a planned life of 15 years with a 2,500 tonne per day concentrator plant at the mine site. Yorbeau estimates the plant would churn through 12 million tonnes grading 4.14% zinc, 0.81% copper, 26.59 grams silver per tonne and 0.24 grams gold over its lifetime.
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