The results outline the development of an underground block/panel cave operation with average annual production of 95,000 ounces of gold at a below-industry cash cost of $115 per ounce over a mine-life of about 12 years.
The preliminary assessment employs base case commodity price assumptions of $1,100 per ounce for gold, $2.80 per pound for copper and $20 per ounce for silver and an exchange rate of US$/C$1.
This assessment shows average annual production of 95,000 ounces of gold at a net cash cost of $115 per ounce, average annual copper production of 41.4 million pounds, and a total of 1.1 million recovered ounces of gold and 490 million pounds of copper over an approximate 12-year mine-life.
The preliminary assessment is based on indicated mineral resources for the Kemess underground deposit at 31 December 2010 estimated using a C$15 ($15.6) per tonne net smelter return cut-off for vertical columns of blocks, the company said.
