Broadening Horizons and Immersing in Potentials
The Schaft Creek joint venture in British Columbia is shaking up the financial world as it advances to the pre-feasibility stage. With planned expenditures of C$18.7 million this year, the venture is set for a transformative journey, fully funded by Teck. Metallurgical tests are poised to conclude, and drilling will delve into the high wall, tailings storage facility, and the rock storage facility.
Strategic Moves and Charting New Territories
Engineering studies of these critical sites, along with proposed infrastructure, are on the agenda. Updates to the environmental baseline data collection, initiated last year and in collaboration with the Tahltan Nation, will continue. The road alignment and construction timeline are primed for an update along with revisions to resource assessments and geological and structural models.
An Eye on the Prizes at Schaft Creek
In 2021, a preliminary economic assessment (PEA) painted a promising picture for Schaft Creek. The pre-tax net present value stood at an impressive $1.4 billion with an internal rate of return of 15.2%. Post-tax, the NPV8% hit $841.1 million coupled with an IRR of 12.9%. Over a 21-year mine life span, the venture plans to produce 5 billion lb. of copper, 3.7 million oz. of gold, 226 million lb. of molybdenum, and 16.4 million oz. of silver in concentrate.
Progressive Strides and Sustainable Goals
The initial capital expenditure is set at $2.65 billion, with sustaining costs amounting to $848.7 million, including closure costs totaling $154 million. The estimation for all-in sustaining costs hovers around $1.18 per pound of payable copper. The resource estimate from 2021 upped the ante, reaching 1.3 billion tonnes grading in the measured and indicated category at 0.26% copper, 0.16 g/t gold, 0.017% molybdenum, and 1.25 g/t silver. The measured and indicated resource boasts 7.77 billion lb. of copper, 1.18 million oz. gold, 511 million lb. molybdenum, and 9.3 million oz. silver. An additional inferred reserve of 344 million tonnes at varying grades propels the venture forward.
The Schaft Creek joint venture’s plunge into the pre-feasibility stage marks a significant milestone in its evolution. With meticulous planning, robust investments, and visionary leadership, the venture is set to carve its niche in the mineral exploration landscape, promising a fruitful journey ahead. Investors and stakeholders have their eyes peeled, anticipating the bright horizons that lie ahead in the realm of resource development and sustainable mining practices.
