Pacific Booker Minerals Inc. (PBM) owns the Morrison property located in Central British Columbia, 35 km north of the Village of Granisle.
PBM is in the advanced stage of development of the Morrison porphyry copper/gold/molybdenum deposit. PBM has completed a Feasibility Study and 43-101 compliant Technical Report and is proposing an open-pit mining and milling operation for the production of copper/gold/molybdenum concentrate from the Morrison deposit. It is located within 29 km of two former producing copper mines, Bell and Granisle.
The Feasibility Study was completed by Wardrop Engineering Ltd., a Tetra Tech Company, with technical support of a team of other consultants. The study describes the scope, design features and financial viability of a conventional open pit mine with a 30,000 tonnes per day mill.
The highlights of the Feasibility Study are:
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The total mineable reserve, classified as proven and probable, at Net Smelter Return (NSR) cut-off-value of $CDN5.60/t, is 224.25Mt with an average grade of 0.330% Copper, 0.163g/t Gold and 0.004% Molybdenum;
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The overburden and waste total is 184.12 Mt for a strip ratio of 0.82:1;
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Recovered metal is 1.37 billion lbs Copper, 658,090 oz Gold and 10.047 million lbs Molybdenum;
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Mine life of 21 years;
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Capital cost is estimated at CDN$516.68 million (including a CDN$59.92 million contingency allocation);
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A projected exchange rate of C$1.00/ US$0.87;
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Operating cost of CDN$8.15 per tonne milled over the life of the mine;
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Pre-Income Tax Internal Rate of Return (IRR) of 20.05%, based on metal prices of (four year trailing average as of January 12, 2009) Copper $2.75, Gold $658.32 and Molybdenum $29.23;
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Net Present Value (NPV) at 8.0% discount rate is CDN$495.9M; and
Payback period on capital is 4.2 years.
Note: Silver was not included in the financial analysis; however, there is an opportunity for improved economic performance if silver credits are received from the treatment and refining of the copper concentrate. Metallurgical test-work to date has reported silver present in the concentrate.
PBM has completed an Environmental Assessment and submitted an Application for an Environmental Assessment Certificate to the BC Environmental Assessment Office.
The Environmental Assessment Certificate is required to apply for the various Licenses and Permits required for the construction, operation and maintenance, decommissioning, and reclamation of the proposed 30,000 tonnes/day open-pit mine over a proposed 21 year period.
PBM also submitted a number of permit applications for concurrent review with the Environmental Assessment Certificate Application, including: (1) the Mining Lease application, which grants mineral production rights from surveyed mineral claims; (2) two Licenses of Occupation, which grant surface rights for the use of Crown Land along the proposed Transmission Line and for an area in the proposed Tailings Storage Facility; and (3) various Forestry permits and licenses, which grant the right to cut timber on the mine site and along the proposed Transmission Line route, and grant permission to use forestry roads for mine access.
Permits and Licenses are expected to be received in 2010 with mine construction to follow.