Larger Red Chris mine proposed

Vancouver — The daily capacity of bcMetals‘ (C-V) proposed Red Chris porphyry copper-gold mine in northwestern British Columbia has been increased to 27,500 from 25,000 tonnes over 18 years.

The project is 12 km east of Highway 37 and will require a 100-km transmission line to plug into the province’s power grid.

The estimated capital cost will be included in a feasibility study by AMEC E&C Services, due this fall.

BcMetals, which recently became sole owner of the project, says a 10-million-tonne-per-year appears likely.

American Bullion Minerals worked the property in the 1990s, the total historic resource being 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.

The British Columbia Supreme Court recently approved the final settlement agreement reached between American Bullion and bcMetals, and permitted the former to emerge from receivership. The province’s securities commission lifted the cease-trade order against American Bullion, enabling the receiver to register 2.4 million shares previously optioned from three of its shareholders.

BcMetals owns 10.7 million shares, or 52.3%, of American Bullion.

American Bullion has a 30% reversionary carried ownership interest, which becomes effective after bcMetals recovers all its costs from production.

At a daily production rate of 27,500 tonnes, 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.

A power transmission line will connect the project to B.C. Hydro’s power grid. The line would start at the Bob Quinn Airport turnoff on Highway 37, about 110 km south of the Red Chris project. As a large industrial user, bcMetals would be required to pay only about US$0.025 per kW-hr.

BcMetals received a preliminary report from B.C. Hydro that doubled the amount of available power to 60 MW.

The company raised $5.2 million for drilling in late 2003, and several rigs are currently turning. Thirteen holes are planned for the Main zone; three for the East zone.