bcMetals eyes new recovery process for Red Chris

Vancouver — BcMetals (C-V) is considering using Outokumpu Technology’s hydrometallurgical process to recover copper and gold from sulphide ores and produce copper on-site at its Red Chris project in northwestern British Columbia.

Situated 82 km south of Dease Lake, the Red Chris porphyry deposit is undergoing the final stages of a feasibility study by AMEC E&C Services. The study, which assesses the economics of the proposed mine using conventional recovery methods, is to be completed before December. Another feasibility will be needed to assess the economics of implementing the new copper facility.

Outokumpu Technology and bcMetals signed a memorandum of understanding to build an integrated copper production facility. The facility would produce copper directly from copper concentrate at the mine site using Outokumpu’s new HydroCopper process at the annual rate of 50,000 tonnes. Outokumpu can negotiate for a minority equity ownership interest in the HydroCopper process facility.

The companies agreed to conduct pilot bench-scale testing on 24 tonnes of Red Chris drill core at the research facilities in Pori, Finland, over the next six months.

The new process has led to recoveries of more than 99%, says bcMetals President Carl Zuber. He adds: “Preliminary testing on Red Chris concentrate has shown excellent results and could have implications for cost savings at other mining operations in British Columbia, as well as in the rest of Canada.”

The $90-million estimated price tag of the plant could be offset by the savings incurred by producing copper on-site, as storing and transportation would not be required.

The HydroCopper process recovers copper and gold from sulphide concentrates. The process was first used in May 2003 at a demonstration plant in Pori.

The hydrometallurgical copper recovery is based on chlorine leaching under normal atmospheric pressure. The process produces high-quality copper of London Metal Exchange grade A+ purity directly from the concentrate. Where a conventional plant produces copper cathodes, the HydroCopper unit produces copper powder which can be melted and cast in the desired form, be it wire, rod or bar. Using the process to produce the end-product copper requires a few days.

At the daily production rate of 27,500 tonnes at Red Chris, concentrate production is projected to be 166,000 dry tonnes grading 27% copper and 12 grams gold per tonne over the first five years, or 95 million lbs. copper and 62,000 oz. gold per year.

The company’s application for an environmental assessment certificate for the Red Chris mine was accepted by the provincial government in September.

A power transmission line is needed to connect the project to B.C. Hydro’s power grid. The line would start at the Bob Quinn Airport turnoff on Hwy. 37, about 110 km south of the Red Chris project.

BcMetals became the sole owner of the project earlier this year. The company owns 10.7 million shares, or 52.3%, of American Bullion Minerals, the former owner. American Bullion has a 30% reversionary carried ownership interest, which becomes effective after bcMetals recovers all its costs from production. The Red Chris property is also subject to a 1.8% net smelter return royalty held by Falconbridge (fl-t).

American Bullion worked the property in the 1990s and outlined a historic resource totalling 550 million tonnes grading 0.32% copper and 0.25 gram gold per tonne, based on 244 drill holes and a cutoff grade of 0.2% copper. The higher-grade core is estimated to contain 210 million tonnes grading 0.46% copper and 0.38 gram gold.