Carmacks feasibility complete

A feasibility study states that the Carmacks copper project in the Yukon can produce 45 tons of copper per day during an 8.5-year mine life.

Situated 25 miles northwest of Carmacks, Y.T., the project is a 50-50 joint venture between Western Copper Holdings (TSE) and Thermal Exploration (ASE). The former recently acquired 4.6 million shares of the latter, giving it an effective interest of 66%. (Toronto-listed Teck is the major shareholder of Western Copper, with a 30% interest.)

The study, prepared by Kilborn Engineering, will be used to raise financing and secure permits.

The No. 1 zone (the focus of the study) has geological reserves of 22.1 million tons grading 1.06% copper and 0.013 oz. gold per ton. It hosts a diluted open-pit oxide reserve of 15.6 million tons grading 1.01% copper and 0.015 oz. gold. Copper recovery is projected at 80%.

A daily mining rate of 10,600 tons would yield 1.8 million tons of ore based on mining 200 days per year, according to the study. The copper would be recovered through heap leaching and solvent extraction-electrowinning. As many as 13 mineralized zones exist on the property, and it is thought that at least three could possibly augment ore from the No. 1 zone.

The project’s capital cost is estimated to be $57 million ($44 million for the plant and equipment, $4 million for engineering and construction and $9 million for contingency). Working capital requirements are estimated to be $5 million, and the initial operating cost is projected at 69 cents per lb. copper. About 105 jobs would be created.

Power would be obtained from an extension of the grid system in Carmacks, and 8 miles of the existing property road would be upgraded. Acid, used in the heap leaching, would be trucked 250 miles from Skagway, Alaska, with the same trucks returning with copper. Williams Creek would provide water for leaching. An environmental review is under way, and land use permits and a water licence are expected to be issued in early 1995. Negotiations are continuing with the Little Salmon Carmacks First Nation, with an agreement expected this fall.