C-Zone Technical Report
The technical report for the A/B zone and C-zone resource, effective March 2, 2010, just went up on SEDAR. Lots of juicy tidbits:
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1) It seems like there's a lot more to do for the feasibility study. I don't think it's likely it will appear by the end of the month:
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"The Phase 2 work plan study includes the completion of a FS planned to be completed in 2012. The cost of the Phase 2 study is estimated to be approximately $20,000,000 and includes further engineering studies, resource definition drilling, geotechnical drilling, exploration drilling and condemnation drilling in preparation for early works programs."
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Another summer 2012 field season of geotechnical drilling seems to be a must for the feasibility study. What's the open pit design going to be? How to build structures on permafrost? Only way to find out is geotechnical drilling and production drilling to outline the pit. No way to get around this. Expect the feasibility study late in 2012.
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2) The five metallurgical testing programs seems to be a tussle over the sulphur content, how to reduce it from 0.7% to 0.07% in the final product. Sulphur flotation required.
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3) Preliminary estimates based upon AEI internal studies: Roche Bay capex of $1 billion for phase 1 (5 million tonnes of production) and another $400 million for phase 2 (10 million tonnes of annual production). Opex of $36.65 per tonne. NPV estimate (8% discount) of $3.61 billion.