Final feasibility proves up Tulsequah Chief

A final feasibility study of the Tulsequah Chief property in northwestern British Columbia has confirmed results of a previous study.

Redfern Resources (TSE) plans to develop a 2,700-ton-per-day mining and milling operation, and forecasts average annual production of 56,000 oz. gold, 2.4 million oz. silver, 22 million lb. copper and 118 million lb. zinc.

Minable reserves are estimated at 8.7 million tons grading 6.35% zinc, 1.27% copper and 1.18% lead, as well as 0.071 oz. gold and 2.9 oz. silver per ton.

Based on average metal prices of US60 cents per lb. zinc, US$1 per lb. copper, US$395 per oz. gold and US$6 per oz. silver, the net smelter return is estimated at $107.41 (Canadian) per ton using an exchange rate of 0.735.

Using more recent prices of US46 cents per lb. zinc, US$1.24 for copper, US$396 per oz. gold and US$5.55 per oz. silver, the net smelter return drops somewhat to $99.06 per ton.

This compares with an estimated operating cost of $50.10 per ton milled.

The capital cost of the mine, including a 100-mile-long access road, is estimated at $143 million, plus an additional $29 million over the life of the mine.

Permitting is proceeding, and the company is entering talks with prospective partners and financial institutions.