Copper Fox Metals (TSXV: CUU; US-OTC: CPFXF) has launched an up to date preliminary financial evaluation for the Schaft Creek copper-molybdenum-gold-silver deposits in northwestern British Columbia. In contrast with a earlier 2013 PEA, the research reduces the challenge’s preliminary capital value by about 19% to US$2.7 billion. Schaft Creek is a joint venture of Teck Sources (TSX: TECK A and TECK B; NYSE: TECK), the 75% proprietor and operator, and 25% companion Copper Fox.
In response to the research, Schaft Creek has an after-tax web current worth of US$842.1 million and an inner fee of return of 12.9% (utilizing an 8% low cost fee). The challenge has a lifetime of 21 years throughout which period 5 billion lb. of copper, 3.7 million oz. of gold, 226 million lb. of molybdenum, and 16.4 million oz. of silver will probably be recovered.
Preproduction capital prices are estimated at US$2.7 billion and sustaining capital at US$848.7 million (together with US$154 million in mine closing prices). All-in sustaining prices in years two by means of 5 will probably be US$0.72 per lb. payable copper, rising to US$1.18 per lb. over the lifetime of the mine.
The brand new PEA contains a number of key adjustments from the technical research executed in 2013. The up to date mine plan reduces the stripping ratio to 1:1 from 2.16:1. The life-of-mine common working value per tonne milled is reduce to US$8.66 per tonne from US$13.25 per tonne. The mill has been relocated nearer to the proposed pit, and the tailings administration facility (TMF) has been moved nearer to the mill. Embankments on the TMF have been lowered to 2 from three, and the waste rock storage areas to 2 from three.
The mine could be a traditional truck and shovel operation. Mining would start in an space of excessive grade materials, transitioning after 5 years to decrease grade materials. The ultimate section of the pit will finish in mineralization.
The nominal milling fee could be 133,000 tonnes per day at 92% capability. Throughput would range from 48.5 million to 51.5 million tonnes yearly, reflecting the grinding traits of the ore. Grinding would come with SAG milling, ball milling and pebble crushing, adopted by bulk rougher-scavenger flotation, regrinding and cleansing. The majority focus could be separated to provide a copper focus with treasured metals and a separate molybdenum focus.
Allowing, detailed engineering, tools procurement, building, and startup to full manufacturing are estimated to take 5 years.
In 2020, the Schaft Creek useful resource estimate included 1.35 million measured and indicated tonnes averaging 0.26% copper, 0.16 gram gold per tonne, 1.25 grams silver per tonne and 0.017% molybdenum, containing 7.8 million lb. copper, 7 million oz. gold, 54.25 million oz. silver, and 511,000 lb. molybdenum. The inferred useful resource was 334,000 tonnes at 0.17% copper, 0.11 gram gold per tonne, 0.84 gram silver per tonne and 0.013% molybdenum.