Red Chris feasibility study and MOU for copper plant

bcMetals Corp. and Outokumpu Technology have signed a memorandum of understanding (MOU) for building an integrated copper production facility, including a HydroCopperTM plant, at the Red Chris copper-gold porphyry deposit in northwest British Columbia. The MOU contemplates design and construction of an integrated plant to produce 50,000 tonnes of copper annually.

The HydroCopper process is Outokumpu’s new advanced technology to produce manufactured commercial copper directly from copper concentrate at the mine site. The MOU also provides Outokumpu the right to negotiate for a minority equity ownership interest in the HydroCopper process facility. Based on the success of preliminary testing conducted on Red Chris concentrate, the parties have agreed on a comprehensive bench pilot test campaign to be carried out with 24 tonnes of Red Chris drill core material at Outokumpu’s research facilities in Pori, Finland, during the next six months.

Results of the feasibility study undertaken by AMEC, released in late November, predict a 25-year project life with an open pit mine and 30,000-tonnes/day mill. The project would produce a total of 1.85 billion pounds of copper and 1,187,000 oz of gold contained in concentrate. Total project capital is estimated at Cdn$228.5 million, including working capital and contingency. Mine site production costs during the first five years average US$0.30/lb Cu, net of gold credits, and Cdn$6.79/tonne milled. The project payback is less than five years.