Previous Page 1 | 2
The study projects an initial capex of $2.46 billion and an 8% discount rate for a pre-tax NPV of $2.82 billion ($1.83 billion after taxes) and a pre-tax IRR of 24% (20.1% after taxes). Payback is expected in three years. The open-pit mine would have a mill operating for 22 years and a heap-leach operation for 18 years. Together they would produce an annual average of 399,000 gold ounces, 245 million copper pounds, 15 million molybdenum pounds and 1.8 million silver ounces for the first four years.
Average annual pre-tax cash flow is forecast at $773 million for the first four years and $531 million over the mine’s lifespan. After taxes, the average is forecast at $682 million for the first four years and $400 million for life.
Combined mining and milling costs are projected at $8.52 per tonne of ore. In December the company sold a 2.75% NSR to a numbered company for US$32 million.
Liquefied natural gas would power both on-site electricity generation and the mining fleet. “The technology to fuel mine haul trucks of the class required for Casino is still in development, but haul truck suppliers have publicly stated that they are targeting 2017 to make this technology commercially available, which is well before the date required for Casino,” Western Copper and Gold stated. LNG “has a significant impact in lowering the unit cost for mine haulage,” added the company.
The study also envisions building a 132-kilometre road through Northern Freegold’s property to connect with the highway and provide year-round access to the deep-sea port of Skagway on the Alaska Panhandle.
Assuming success with permitting and funding, construction could begin in 2016, heap-leach production in 2017 and concentrator production in 2019.
On the day of the January 7 announcement, Western Copper and Gold shares opened at $1.40, eight cents above their previous close. The highest point since was $1.53 on January 9, before closing that day on $1.50.
Previous Page 1 | 2
Pages: 1 2