News: Pre-Feasibility ResultsTSE SYMBOL: CBDAPRIL 27, 2000Meadowbank Gold Project: Pre-Feasibility Results,
Reserves Posted and Mobilization for Drilling
VANCOUVER, BRITISH COLUMBIA--CUMBERLAND RESOURCES LTD. (CBD-TSE)
has received a pre-feasibility study report, prepared by MRDI
Canada a division of AGRA Simons Limited, for the Meadowbank Gold
Project located 70km north of Baker Lake, Nunavut.
The pre-feasibility study recognized 7,157,000 tonnes grading 5.93
g/T in a 9 year production schedule of 2250 tonnes per day and a
gold price of $US 325. This includes proven and probable open pit
mining reserves of 5,502,000 tonnes grading 5.44 g/T (962,400
oz.), sufficient for 7 years of the production schedule. The
remaining 1,655,000 tonnes grading 7.55 g/T (404,200 oz) are
classified as inferred resources and can be rapidly converted to
reserves with additional drilling. The study is based on a year
round production model with coincident open pit (strip ratio of
7.5:1) and underground mining. Mill recovery is estimated at 92.4%.
An alternative scenario resulted in an optimum milling rate of
2500 tonnes per day, yielding an average of 157,000 ounces gold
per year. Total estimated capital costs are US$93 million
including all mine site and infrastructure costs, allowances for
reconditioned process equipment and a contingency of US$13.5
million. Estimated cash operating costs (includes mining, milling,
general and administration, refining and transportation costs)
average US$187 per ounce over the production schedule. This
predicted cost compares very favourably to worldwide average cash
operating costs. With a long-term gold price of US$ 350 the model
estimates a 4.2 year payback (3.8 years on a pretax basis).
Cumberland's management concludes "The study indicates that we are
close to meeting our goals with this project. We require a
similar payback period (4.2 years) and a minimum production life
of 10 years, based on a long term gold price of $US325. Several
promising drill targets, within close proximity to known deposits,
could realize these goals in the near term and provide the
momentum to move this project to feasibility."
A staged $1.5 million drilling and ground exploration program,
focusing on targets along the 20km extension of the Meadowbank
gold trend, will commence in approximately 2 weeks.
Cumberland Resources is a Canadian gold exploration company with
interests in three emerging projects: Meadowbank (100%), Meliadine
West (22% carried), and Meliadine East (50%). The Company is well
financed with approximately $6.0 million in cash to advance these
outstanding projects. All projects are located in the new
territory of Nunavut, Canada. CUMBERLAND RESOURCES LTD.
Kerry M. Curtis, P.Geo., Senior Vice President