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The
approximate cost of restarting the mine is estimated to be about $10
million. Most of the mechanical equipment could still be serviceable
although the electrical system would need to be entirely replaced.
Revenue-
At production rates similar to the average in the past the value of
copper and gold produced would be about $14 million dollars per year.
The breakdown of values is based on current prices for copper of
$6.80/kg, silver $19/oz, equals $610/kg, and gold $1,142/oz, $36,700/kg
is as follows:
|
|
Kg/y |
$/kg |
$million/y |
|
Copper |
1,900,000 |
6.80 |
12.9 |
|
Silver |
310 |
610 |
0.2 |
|
Gold |
28 |
36,700 |
1.0 |
|
Total |
|
|
14.1 |
Operating
Cost- At the time of the
mine closure mining, milling and concentrating costs were $0.70/kg and
the shipping and smelting cost was $0.44/kg for a total cost of
$1.14/kg. This was about $2.0 million per year. When the mine closed the
copper price was $1.41/kg and the income was $1.5 million per year. The
average current cost of production, transport and smelting is
conservatively estimated at triple the cost in 1978, about $5 million
per year.
Payback-
The income before interest, taxes, government and First Nations
royalties would be about $ 9.1 million per year. The payback on
investment would be less than one year.
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Reserves- In June 1973 at the time of mine closure, the
River and Cave zone of the mine had a inventory of 1.0 million
tonnes @ 1.47% proven copper and 0.42 million tonnes at 1.33%
copper probable. The Centre and other zones also hold
significant additional resources. Two other zones were mined
briefly from adits west of the Jordan River. The Vulcan property
south west of the mine, also held by Cominco, was test mined
from several surface trenches and pits.
All of
the mining was in the River and Cave zones but other areas were
explored along the Jordan River and Winkler Creek. The Tiger
zone is in basalt. A series of large rusty outcrops occur for a
strike length of 260 feet extending from the main outcrop and
elevation from 290 to 520 feet. Mineralization occurs over a
length of at least 300 feet. Core assayed 1.6% copper over a
width of 20 feet. It was recommended that this zone should be
tested at greater depth.
The
Yellow Cliff zone showed some very good mineralization in
surface trenches. In 2.1% copper over 3 feet and another 3.3%
copper over 5 feet. The Caulfied zone includes six old pits
scattered at intervals along 1,300 foot elevation of the
southwest contact. A showing at elevation 340 feet was tested
with three holes. The first cut ore between 2 and 3% copper over
5-7 foot widths at shallow depth.
Further
drilling would be required to bring the resources estimate up to
the modern 43-101 stock exchange security standard. An 11 hole
1,800 meter drill program budgeted to cost $250,000 has been
outlined by a professional geologist familiar with the property. |
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