Vancouver – bcMetals (C-V) has received provincial government environmental approval for its Red Chris copper-gold project located in the Iskut region of northwestern B.C.
Following 11 months of review, the sign off on the environment assessment certificate clears another hurdle for development of the large porphyry deposit. The project now advances to the construction and operating permit phase, with development anticipated to commence next year.
bcMetals continues discussions with a number of mining, metal trading and smelting companies regarding entering an off-take partnership agreement for Red Chris production. The company has stated it’s willingness to sell up to a 45% interest to offset the estimated $227 million in development costs of the planned mine.
The Red Chris final feasibility study, completed in late 2004, proposes an open pit mine with an estimated 25-year life based on a 30,000-tonne-per-day milling rate with proven and probable reserves of 276 million tonnes grading 0.35% Cu and 0.27 gram gold per tonne. Life-of-mine metal recoveries are estimated at 1.85 billion pounds of copper and 1.2 million oz. of gold. In the first five years of operation the estimated average cash cost, net of gold credit, is US27.4 per pound of copper using metal prices of US$1.10 per pound of copper, US$375 per oz. of gold and US$5.50 per oz. of silver.
Red Chris is estimated to produce 180,000 tonnes of copper-gold concentrate annually, containing 27% copper, 12-16 grams gold and very low levels of lead, zinc and arsenic.
Construction of a 23-km access road to Hwy. 37 and a 175-man camp are included in the development plans. Concentrate shipments would be through the port at Stewart.
Additionally, final British Columbia government approval is anxiously awaited on whether to finance an electrical power line along the Meziadin-Iskut corridor. The line would serve Red Chris and other potential mineral development projects in the region including NovaGold Resources’ (NG-T) Galore Creek deposit.
bcMetals posts a $15 million market capitalization given its 30 million shares outstanding and recent 50 trading level.
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