Western Copper jumps environmental hurdle at Carmacks

VANCOUVER — An OK from the Yukon Environmental and Socioeconomic Board (YESAB) on Western Copper’s (WRN-T, WCPCF-O) Carmacks copper project paves the wayfor a mining licence, Julien Francois, Western Copper chief financial officer says.

The blessing from YESAB concludes that the Carmacks copper project, 200 km north of Whitehorse, Yukon, in the Dawson Range Mountains, may go ahead without further YESAB review.

“This sets us up nicely for the decision document by the Yukon government,” Francois says. The decision document precedes a quartz mining licence.

The YESAB decision includes an assessment of the project’s effects on soil, air, water and wildlife, as well public and worker health and safety, heritage resources and local communities. In essence, the YESAB decision means that it was satisfied with Western Copper’s mitigative measures for the project.

The Carmacks project has a measured and inferred oxide resource of 12 million tonnes grading 1.07% copper, 0.46 gram gold per tonne and 4.6 grams silver. In sulphides, it has a further 4.3 million tonnes grading 0.75% copper, 0.22 gram gold and 2.4 grams silver.

In a May 2007 feasibility study, Western Copper outlined a plan for an open-pit mine with a 6-year mine life using acid heap-leach and solvent extraction-electrowinning for a final end product of London Metal Exchange grade A copper cathode.

The feasibility put proven and probable reserves at 10.6 million tonnes grading 1.04% copper, 0.48 gram gold and 4.6 grams silver.

Capital costs came in at $144 million, with the Canadian dollar at US85. With the dollar at parity, Western Copper more recently noted that those costs decrease to $131 million.

Western Copper calculated the cost per lb. copper at 98. With copper at US$2.32 per lb. the net present value (NPV) of the project was $85.1 million, the internal rate of return (IRR) was 21.1% and the payback period was 3.6 years. Alternatively, with copper at US$3.95, the NPV was $363.3 million, the IRR was 56.1% and the payback period was 1.7 years.

On news of the YESAB recommendation, Western Copper’s share price bumped up 2.4% to close at $1.29. The company has 73 million shares issued.