A few months later than expected, the ramp at the Storliden copper-zinc project in northbern Sweden has reached its destination, stretching 960 metres to provide access to the 1.8-million-tonne deposit.
The ramp entered the West zone at a vertical depth below surface of 120 metres, reports project owner North Atlantic Natural Resources (NAN). The Swedish-based company is held 38% by each of
Mining and stockpiling were expected to begin at around presstime. Stockpiled material will be processed at the Boliden mill, which is being modified to the tune of US$2.3 million. The mill is just outside the town of Skelleftea, 90 km to the east.
Commercial mining won’t get under way until June. At full production, the mine will produce 25,200 tonnes of zinc-in-concentrate and 11,150 tonnes of copper-in-concentrate annually over six years.
Capital costs (including mill modifications) are pegged at US$13.9 million. Boliden is providing the financing and will be repaid out of 75% of the first year’s revenue.
Life-of-mine net profits are projected at US$59 million, two-thirds of which will accrue to NAN and the rest to Boliden. NAN is also entitled to a bonus of US$1 million and intends to recover US$5 million in exploration costs.
All financial estimates assume a copper price of US70 per lb., a zinc price of US40 per lb. and an exchange rate of 10.2 kronos per US$1.
During the third quarter of 2002, the first revenue will be generated by the sale of copper concentrates to the Boliden Ronnskar copper smelter, near the port of Skelleftea, and by the sale of zinc concentrate to European zinc smelters.
Underground resources stand at 1.8 million tonnes grading 10.3% zinc and 3.43% copper, plus 0.25 gram gold and 24 grams silver per tonne.
Boliden is acting as the project’s principal contractor during the construction phase and will operate the mine once it reaches full production.
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