Capstone Mining completes pre-feasibility study at Minto mine

18 June 2012 (Last Updated June 18th, 2012 18:30)

Capstone Mining has completed the Phase VI pre-feasibility study for its Minto copper-gold mine in Central Yukon, Canada.

Capstone Mining has completed the Phase VI pre-feasibility study for its Minto copper-gold mine in Central Yukon, Canada.

The study was initiated to understand the economic feasibility of the Minto South Deposit and extensions to that deposit called Copper Keel and Wildfire.

Capstone Mining president and CEO Darren Pylot said that successful exploration and the latest study and development plan extends the mine's life to 2022 at a proposed production rate of 3,750 tonnes per day.

"In addition, exploration on the Minto property remains on-going to further define and potentially expand the mineral resources, as well as explore additional new zones of mineralisation," said Pylot.

The net present value (NPV) is estimated to be $278m before tax and $192m after tax, with life-of-mine capital costs valued at $103m.

The study, undertaken by Capstone Mining, found proven and probable open pit and underground mineral reserves have increased to 14.4 million tonnes.

SRK Consulting provided block model validation as well as open-pit and underground geotechnical evaluations, while Eggert Consulting was responsible for information related to metallurgy and mineral processing.