Junior New Canamin Resources (VSE) has contracted Kilborn Engineering to carry out a feasibility study of its Huckleberry property near Kemano, B.C.
The company is in the midst of a 12,000-metre infill and expansion drilling program on the East zone. The structure was discovered last year when the company was drilling a water-monitoring well, 1,200 metres east of the Main zone.
The Main zone contains a preliminary resource estimated at 31 million tonnes grading 0.52% copper.
Prior to this year’s stepout drilling, the East zone was estimated to contain 40 million tonnes grading more than 0.6% copper. Recent drilling indicates it is still open to the northeast, and stepout work is continuing. New Canamin is also drilling deeper infill holes to add to the drilling density and to test the East zone to depth.
Metallurgical tests on the Main zone material demonstrate that recoveries of 95% can be achieved. Concentrate grades are estimated at 27.1% copper, 4.37 grams gold and 53.9 grams silver per tonne.
New Canamin President Alan Savage said the feasibility will be based on a 9,000-tonne-per-day operation, with concentrate likely trucked to rail at Houston, about 120 km away.
Savage said the capital cost is unlikely to exceed $90 million, adding that the feasibility should be complete by September or October.
The company is well-funded, with about $2.2 million in working capital.