(Kitco News) - On Tuesday, Western Copper and Gold (TSX: WRN) released the results of its feasibility study on its wholly-owned Casino copper-gold-molybdenum deposit in the Yukon, Canada.
According to the company’s statement, the study considers the project being constructed as an open pit mine, with a concentrator processing 120,000 tonnes per day (t/d) to recover copper, gold, molybdenum and silver, as well as a 25,000 t/d oxide heap leach facility to recover gold, silver and copper.
The company said that at base case metal prices (Cu: US$3.60/lb, Au: US$1,700/oz, Ag: US$22/oz, Mo: US$14/lb), the project generates C$2.3 billion after-tax NPV (8%), with after-tax IRR of 18.1% and cashflow over the first four years of C$951 million per year. Base case development contemplates a 27-year mine life.
The company noted that due to inflation over the past 12 months since the preliminary economic assessment was issued, there were cost increases to certain capital and operating cost inputs, adding that items of particular note were diesel price, which saw a price increase of 40.3%, and steel, reflected by a price increase in grinding media of 33.2%.
Total initial capital investment in the project is estimated to be C$3.62 billion, which represents the total direct and indirect cost for the complete development of the project, including associated infrastructure and power plant.
Importantly, the company noted that the study indicates that the potential economic returns from the project justify its further development and securing of the required permits and licenses for operation.
“The results from the feasibility study confirm the project’s robustness and ability to withstand inflationary pressures,” stated President and CEO Paul West-Sells. “This study reaffirms Casino as one of the very few long-life copper-gold projects with robust economics in a top mining district, the Yukon. We are continuing to collaborate with our strategic investor, Rio Tinto, and continue to engage with First Nations and community stakeholders to advance this project toward the submission of Casino’s Environmental and Socio-Economic statement in mid-2023.”
Western Copper and Gold said it is developing the Casino project, Canada’s premier copper-gold mine in the Yukon Territory and one of the most economic greenfield copper-gold mining projects in the world.
