Yellowhead Mining Inc. (TSX:YMI) announced the results of an updated feasibility study for its British Columbia-based Harper Creek project, commenting that proven and probable mineral reserves come to 716 million tonnes at 0.26-percent copper, 0.029 grams per tonne (g/t) gold and 1.2 g/t silver. That represents “approximately 4.077 billion pounds of contained copper.”
The company also released its operational results for the three and six months ended June 30, 2014.
Feasibility study highlights (on a 100-percent equity basis) include:
- Measured and Indicated mineral resources of 1,300 Mt @ 0.25% Cu, 0.028 g/t Au and 1.2 g/t Ag, representing a total of approximately 7.253 billion pounds of contained copper
- A 28 year mine life, a mill throughput rate of 70,000 tpd, and a Life of Mine (‘LOM’) average annual copper concentrate production of 231,000 dry metric tonnes
- Initial capital cost of approximately C$1 billion and LOM sustaining capital of C$335.8 million
- C1 cash operating costs, net of precious metals credits, of US$1.82/lb Cu
- Net present value8 (‘NPV8′) before tax of US$684 million, and a NPV8 of US$355 million after tax assuming metal prices of US$3.00/lb Cu, US$1,250.00/oz Au and US$20.00/oz Ag
- Internal rate of return (‘IRR’) before tax of 16.8%, and an IRR after tax of 13.4%, on a 100% equity basis
- Payback period of 5.4 years after tax, on a 100% equity basis
Frank Wheatley, CEO of Yellowhead, commented:
The completion of the updated Feasibility Study is a critical milestone in the preparation of Yellowhead’s application (‘EA Application’) for an environmental assessment certificate for the Project, which we are currently targeting submitting to the British Columbia Environmental Assessment Office (‘BC EAO’) at the beginning of the fourth quarter of 2014. We continue to take a disciplined approach to the development of Harper Creek, and with the Feasibility Study completed and reconfirming the value of Harper Creek, our attention is now focused on the finalizing the updated EA Application for Harper Creek.