After two years of waiting, Plexus Resources (TSE) has received approval from environmental regulators to develop its Bornite project near Salem, Ore.
A Record of Decision and approval of the Final Environmental Impact Statement were announced last month. However, Plexus must also complete additional state permits, including those for water pollution, water rights, wetlands modification, operations and reclamation. Plexus expects to receive the permits within 60 days.
Plans include a 1,400-ton-per-day underground mine operating five days per week and a 1,000-ton-per-day surface mill producing a flotation concentrate. The Bornite orebody is contained within a cylindrical breccia pipe about 450 ft. in diameter and extending from surface to a depth of about 1,000 ft. Minable reserves are estimated at 2.2 million tons grading 2.56% copper, 0.021 oz. gold and 0.58 oz. silver per ton.
Based on estimated recoveries of 95% for copper, 90% for gold and 95% for silver, output will average about 17.5 million lb., 6,800 oz. and more that 190,000 oz., respectively.
Cash operating costs net of byproduct credits are expected to be about US64 cents per lb. while the capital cost to bring the project into production is about US$18 million.
Michael Washington, vice-president, said the company is in preliminary discussion with a major resource bank to fund about 65% of the capital cost. He noted, however, that the pending merger of Plexus, CMP Resources (ME) and a private company may have the effect of postponing development of Bornite until a joint-venture partner is found.
Shareholders of Plexus and CMP will vote on the proposed merger on May 18. If approved, it will be completed by the end of May.
The new company, to be named Kinross Gold, is expected to focus on gold projects.
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