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Highland Copper announces positive feasibility study results

Mining News - Published on Tue, 19 Jun 2018

Image Source: globenewswire.com
Highland Copper Company Inc announced that the results of a feasibility study for its 100%-owned Copperwood project located in Gogebic County, in the Western Upper Peninsula of Michigan, USA.

Highlights of the Copperwood Project Feasibility Study

1. After-tax internal rate of return of 18%
2. Initial capital expenditures of CAD 245 million, net of pre-production revenue of CAD 30 million
3. Life-of-mine cash costs of $1.53/lb, including royalties and CAD 1.29/lb in the first five years of production
4. Proven and Probable Reserves of 25.4 M tonnes @ 1.43% Cu and 3.83 g/t Ag, containing 801.8 M lbs of copper and 3.1 Moz of silver
5. Additional Mineral Resources of 49.9 M tonnes @ 1.15 % Cu and 3.42 g/t Ag in the Inferred category, containing 1.3 B lbs of copper and 5.5 Moz of silver using a 1% Cu cut-off
6. Average annual LOM payable copper production of 61.7M lbs and 100,570 oz of silver
7. Initial copper production expected in early 2021

Mr Denis Miville-Deschênes, President and CEO of Highland Copper said that “A major step forward for the Copperwood Project.” Mr Denis said that “The Feasibility Study demonstratesthe significant potential of this project located in a great historic mining jurisdiction. Based on the results of the study, we can now focus on putting in place a comprehensive financing package.” Mr Denis added that “The development of a mine at Copperwood represents a tremendous opportunity to create hundreds of jobs in the region.”

The Feasibility Study was conducted by, and under the supervision of, GMining Services Inc in collaboration with SGS Canada Inc, Lycopodium Minerals Canada Ltd, Golder Associates and Foth Infrastructure and Environment. The study provides a comprehensive overview of the Copperwood Project and defines an economically feasible, technically and environmentally sound project.

Opportunities to Increase Copperwood Project Value
Highland and its consultants have identified a number of opportunities to increase the value of the Copperwood project. These include upgrading inferred mineral resources, increasing mine productivity utilizing innovative continuous mining technologies, conducting further geotechnical studies to optimize ore recovery and minimize mining dilution, review ingtailings disposal alternatives, and conducting additional testing to maximize metallurgical recoveries.

Copperwood Project
The Copperwood Project property is located, by road, approximately 22.5km to the north of Wakefield and 40 km from the town of Ironwood, both in Gogebic County, western Upper Peninsula, Michigan. The project area is at the south edge of the Keweenaw Copper province and underlain by clastic sediments of the Oronto Group, including the Copper Harbor, Nonesuch and Freda Formations.

The Copperwood and its “satellite”deposits are hosted by the limbs of the northwest dipping Presque Isle Syncline within the Nonesuch Formation. The Nonesuch Formation contains two mineralized sequences, one located at the base, the Lower Copper Bearing Sequence and a stratigraphically higher one, the Upper Copper Bearing Sequence, separated by poorly mineralized sediments with a variable thickness of 0.5 m to 6.0 m.

Chalcocite is the only copper sulfide bearing mineral, occurring principally as disseminations within shale and siltstone. Individual disseminated grains of chalcocite are most commonly very fine grain, approximately 5 to 50 microns in diameter. The Copperwood deposit is relatively sub-horizontal with a thickness that varies from 1.6m to 3.7m.

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Posted By : Rabi Wangkhem on Tue, 19 Jun 2018
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