Capstone completes the Yukon’s Minto Mine Phase VI pre-feasibility study

Study extends mine life to 2022 with yearly average copper production of 40 million pounds at an average cash cost of $1.92/lb of payable copper.

Capstone Mining has announced the results of the Phase VI Pre-Feasibility Study (Phase VI PFS) for its Minto copper-gold mine in Yukon.

This study was initiated to apply economic considerations to the Minto South Deposit (MSD) mineral resource and more specifically extensions to that deposit called Copper Keel and Wildfire in order that it may be converted to a National Instrument 43-101 compliant (NI 43-101) Mineral Reserve. The study builds on the previous Minto Phase V Pre-Feasibility Study (Phase V PFS) by incorporating new mineral reserves and a new life-of-mine plan that includes the additional underground mineral reserves from the Copper Keel and Wildfire zones; optimized pit designs; processing plant capacity improvements; updated costs and economic analysis.

Highlights (all amounts in Canadian dollars unless otherwise indicated)

• Mine life extended to 2022 with an average of 40 million pounds of copper production per year;
• Net present value (NPV), at a constant US$3.25/pound copper price and a 8.0% discount rate, of $278 million before tax and $192 million after tax;
• Proven and probable open pit and underground mineral reserves have increased to 14.4 million tonnes grading 1.53% copper, 0.58 grams/tonne gold, and 5.12 grams/tonne silver, for a contained 484 million pounds of copper, 270,000 ounces of gold, and 2.4 million ounces of silver;
• Life-of-mine (LOM) capital cost of $103 million; and
• Life-of-mine cash costs(1) of US$1.92/pound of payable copper, after by-product credits (with gold at US$300/ounce and silver at US$3.90/ounce, as per an agreement with Silver Wheaton).
• Key Performance Indicators associated with the addition of underground mineral reserves at Copper Keel and Wildfire on an after tax basis is an NPV8% of $15 million with an IRR of 31% and capex at $25 million based on an NSR cut-off of C$64.40 per tonne.

"The Minto Mine has been very successful as the Yukon's first operating hard rock mine since the 1990s, bringing stable long-term employment and royalty benefits to the Yukon. It started operations in 2007 at 1,600 tonnes per day with an eight year mine life, and now, five years later, as a result of successful exploration this latest study and development plan extends the mine life to 2022 at a proposed production rate of 3,750 tonnes per day," said Darren Pylot, president and CEO of Capstone. "In addition, exploration on the Minto property remains ongoing to further define and potentially expand the mineral resources, as well as explore additional new zones of mineralization."

Read the full report here…capstonemining.com