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