Results from last year’s drilling at the Polaris Taku gold property in northwestern British Columbia have boosted the geological resource 25% to an estimated 3.6 million tons grading 0.4 oz. gold per ton.
The resource is contained in three main vein systems, and Canarc Resource (TSE) attributes the increase to the intersection of the C vein system at depths of up to half a mile (more than double the previously known depth). The resource calculation is based on a 0.2-oz. cutoff.
Canarc is planning a $5-million feasibility program for 1996 at the former producer. Extensive underground development and drilling will be carried out in an effort to upgrade half the resource of 1.4 million contained ounces into into the minable category.
Based on the updated estimate, Canarc has assessed the economics of a 1,200-ton-per-day mine using on-site autoclave processing. It estimates that yearly output of 145,000 oz. over a mine life of 10 years, and at an operating cost of US$180-210 per oz., would generate a pretax operating profit of US$264 million from revenue of US$553 million. After-tax cash flow is projected at US$112 million. The figures are based on a gold price of US$389 per oz. and an exchange rate of US72 CENTS.
The capital cost is estimated at US$62 million with a payback period of 2.2 years. The model assumes a dilution factor of 17%, a head grade of 0.35-0.4 oz. and a gold recovery of 90-95%.
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