Fitch Ratings has predicted that sustained Chinese demand will
protect copper prices from a sharp sustained fall. While Chinese
GDP growth is slowing, armies of cranes still clutter the skyline,
and monthly copper imports are holding steady. "Copper is unlikely
to see the same extended decline as oil and iron ore," the Fitch
report stated.
Copper North (TSX-V:COL) has unveiled a new processing plan for
the recovery of copper, gold and silver at Carmacks project in the
Yukon.
"Since taking over this project in March 2014, I have been
working on three principal objectives to change the economics of
the project from average to spectacular," stated President, CEO and
Director Dr. Harlan Meade in an exclusive interview with Financial
Press.
The first objective was to establish gold and silver credits.
COL now has a Measured & Indicated mineral resource containing
133,700 ounces payable gold and 1,279,000 ounces payable
silver.
"At today's spot prices that is close to $200 million dollars of
precious metals that were unaccounted for in previous economic
modelling," stated Meade.
The second objective was to reduce production cash costs. The
gold and silver recovery creates a projected 28% increase in
life-of-mine net revenue – reducing cash costs from US$1.60 per
pound of copper to US$1.07 per pound.
"On a graph with our global peers, that moves us from the middle
of the cost curve, to the very bottom," stated Meade "This
significantly de-risks the mine because we will still be profitable
at much lower copper prices."
The third objective was to improve the short and long term
financial health of the Copper North.
"When I took over ten months ago, Copper North was $1.5 million
in arrears," stated Meade "Shortly it will be debt free and have
enough cash to cover expenses and fund on-going feasibility work.
We are exploring gold and silver metal streaming transactions to
fund project development. This would enable us to raise a big chunk
of the capex of the mine, without share dilution or hedging of the
copper."
A pilot test program confirms that the oxide mineral resources
at Carmacks can be optimized using an "agitated tank leach" for
both copper and the gold and silver.
Meade cites three reasons why the agitated leach is an important
milestone. "One, we do not need to grapple with the environmental
stigma around leach pads. Two, it eliminates logistical challenges
that come from maintaining a leach pad during extreme winter
conditions. Three, it removes a number of handling steps and
provides more operational control to optimize recovery."
The agitated tank leach is a contained system with a small
footprint. The July 2014 Preliminary Economic Assessment projects a
capital cost reduction for the mine of about 30%. The new target is
about $150 million.
"Leaching of heaps in winter was a concern - tank leaching
eliminates the concern," stated Meade, "With the new system we are
getting leach times of less than 24 hours. With agitated tank leach
and elimination of heap leach pads we reduce the Capex by about $75
million and get rid of a lot of tricky and costly procedures to
operate it. It is also much cleaner environmentally and gives us
additional process control."
The New Process Plan consists of three-stage crushing, followed
by rod mill grinding. The ores are then placed in an agitated tank
with weak sulphuric acid. The leachate is pumped to
electrowinning plant for recovery of cathode copper. The copper
cathode can be sold directly to end-users for fabrication.
Residues from the cyanide circuit undergo destruction prior to
deposition in a dry stacked waste facility. Dry stacked tails are a
preferred means of storing waste as it eliminates the need for a
tailings pond.
Copper North has engaged the Beijing General Research Institute
Of Mining and Metallurgy, and they have begun design work for the
agitated leach process as part of a Prefeasibility Study to be
completed by the end of Q2, 2015.
Improvement of recoveries and advance revenues from precious
metals and the opportunity to enter into metal streaming contracts,
have radically improved the economics of the Carmacks project.
The proposed mining area consists of multiple zones spanning
approximately 600 metres of the main structure. The mineral
resources include 11.98 million tonnes of Measured and Indicated
resources grading 1.07% copper, 0.456 g/t gold and 4.58 g/t
silver.
"The 2014 exploration program confirmed the opportunity for
significant expansion of both oxide and sulphide mineral resources.
A larger program is being planned for 2015 with the goal to expand
the oxide mineral resources in pursuit of extending the potential
mine life."
The Carmacks project is only 30 km off the Alaska
Highway. There are power lines 9 kilometers from the property
providing electricity at about 9.5 cents per kilowatt/hour – 30% of
the cost of diesel generation.
Reduced transportation costs are another advantage for Copper
North. The Carmacks project will generate 99.9% pure copper on
site. It will not have to truck concentrate to a smelter. The
company will be loading 400 pound copper plates onto the back of a
flatbed truck.
Production is forecast is 30 million pounds of copper a year,
17,000 ounces of gold, and 165, 000 ounces of silver. The combined
revenue from the metals at current spot prices is about $105
million per year.
Copper North is currently trading at $0.06 with a market cap of
$6.9 million.
Legal Disclaimer/Disclosure: This document is not and should not
be construed as an offer to sell or the solicitation of an offer to
purchase or subscribe for any investment. Financial Press makes no
guarantee, representation or warranty and a fee has been paid for
the production and distribution of this Report.
CONTACT: Copper North Mining Corp.
Dr. Harlan Meade
President and Chief Executive Officer
604 398 3451
info@coppernorthmining.com
www.Coppernorthmining.com
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