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Chieftain Metals Updates Tulsequah Chief Feasibility Study
Oct. 20, 2014 04:05PM PST
Base Metals Investing Chieftain Metals Corp. (TSX:CFB) announced the results of an update to the 2012 feasibility study for its British Columbia-based Tulsequah Chief polymetallic project and nearby Big Bull deposit.
Chieftain Metals Corp. (TSX:CFB) announced the results of an update to the 2012 feasibility study for its British Columbia-based Tulsequah Chief polymetallic project and nearby Big Bull deposit. The two are collectively referred to as the Tulsequah Shazah Camp.
Feasibility study update highlights include:
- Based on a 1,100 tonne per day underground mining operation with an 11-year mine life.
- Reserves of 4.4 M tonnes (of which 684 Ktonnes (15%) are proven) are the higher-grade portion of the 6.4 M tonnes previously reported in the 2012 Feasibility Study.
- Base Case metal price deck for metals and foreign exchange based on spot prices at October 15, 2014.
- Annual Zinc Production of 46.9 million pounds (lbs) at a C1 cash cost of zinc production (net of by-product credits) of negative ($0.25)/lb.*
- Use of conventional barging for five months of the year to transport concentrate and supplies. This logistical solution eliminates the road proposed in the 2012 Feasibility Study saving $125 million in capex.
- Pre-production capital costs are estimated to total $198 million including contingency.
- Operating costs are estimated to average $186 /tonne processed including concentrate shipment.
- The Feasibility Update yields a pre-tax Net Present Value (NPV8%) of $212 million and an IRR of
25.2% and post-tax NPV8% of $146 million and an IRR of 21.9%.
Click here to read the full Chieftain Metals Corp. (TSX:CFB) press release.