Mining News: AuRico investigates potential of adding Kemess East to plan

AuRico Metals Inc. May 29 published results from a preliminary economic assessment that indicates positive economics of developing a mine at Kemess East, one of several gold-copper deposits on its Kemess project in northern British Columbia. Last year, AuRico published a feasibility study that outlined plans to develop of a low-cost panel caving operation at Kemess Underground, a deeper deposit about 1,000 meters west of Kemess East, and the company is planning a feasibility study that considers a feasibility study that integrates the two projects. Home to the historical Kemess Mine, the Kemess property already has roughly C$1 billion of infrastructure in place, including processing facilities, camp, powerline, all-weather airstrip, access road, administrative building, workshop and warehouse. The Kemess East PEA anticipates an open-pit operation that would produce 963,000 ounces of gold, 687 million pounds of copper and 3.8 million oz of silver over a 12-year mine-life. The capital costs to bring this mine into production are estimated to be around C$327 million. The PEA estimates this operation, independent of Kemess Underground, would produce a post-tax net present value (5 percent discount) of C$670 million and an internal rate of return of 16.7 percent. The upcoming feasibility study will include the results from infill and expansion drilling planned for Kemess East this summer.

–SHANE LASLEY