Great Gold News from next doorbcMetals sizes Red Chris at 27,500 tonnes per day
2004-07-12 09:42 ET - News Release
Mr. Carl Zuber reports
BCMETALS CORPORATION: RED CHRIS PROJECT SIZED AT 27,500 TPD
bcMetals Corp.'s Red Chris porphyry copper-gold project has been sized at a daily production rate of 27,500 tonnes per day, with an 18-year mine life. This 10-million-tonne-per-year production rate was determined to be the most proficient use of mine resources following completion of trade-off studies that included consideration of management's ability to source the estimated project and working capital required by the company as a new, one-mine owner. The bankable feasibility study is on schedule to be completed this fall and AMEC is now proceeding with estimates of project capital costs.
Subject to feasibility study confirmation, at this 27,500-tonne-per-day production rate, concentrate production over the first five years will average 166,000 dry metric tonnes (dmt) grading 27 per cent copper and 12 grams per tonne gold delivering payable production of 95 million pounds of copper and 62,000 ounces of gold annually to the project during this period.
The project requires a new power line be constructed to the mine site. Power generation at site is no longer an option due to the high current fuel costs. Discussions to build a power transmission line to Red Chris are continuing with British Columbia Transmission Corp., B.C. Hydro and the minister of state for mining, Pat Bell, assisting with regional implications. Red Chris, as a large industrial user, would pay only approximately 2.5 U.S. cents per kilowatt per hour for power purchased from B.C. Hydro, the same attractive rate enjoyed by all large industrial users throughout British Columbia, and one of the lowest power rates in the world: a most compelling economic case for connecting Red Chris to this power grid.
Drilling at Red Chris is progressing with three drills on site. Thirty-eight persons are in camp performing various final investigations required to complete the feasibility study.
At the Fire Mountain porphyry molybdenum prospect, the company completed its 75-per-cent ownership earn-in option by drilling over 3,000 metres in three diamond drill holes. The first two holes were each drilled to below 1,100 metres from surface. John Bellamy, PGeo, is on site managing the program. The company anticipates assay results will be available in three to four weeks.
WARNING: The company relies upon litigation protection for "forward-looking" statements.