ZINC-GOLD-COPPER: Feasibility optimized for Chieftain’s Tulsequah project

BRITISH COLUMBIA – Capex is reduced and production costs will be in the bottom quartile of zinc cash costs, according to the optimized feasibility study prepared for the Tulsequah Chief zinc-gold-copper-silver-lead project of Toronto's Chieftain Metals Corp. The property lies about 100 km south of Atlin.

Here are some highlights for a 1,100-t/d underground mine with an 11-year life:

• Preproduction capital requirements are $198 million.
• Operating costs will average $186/tonne milled, including shipment of concentrate.
• Annual zinc production will be 46.9 million lb at a C1 cash cost, net of by-product credits, at an estimated –25¢ per lb.
• The pre-tax net present value (8%) will be $212 million and the internal rate of return will be 25.2%.
• The post-tax NPV (8%) will be $146 million and the IRR 21.9%.

Proven and probable reserves total 4.44 million tonnes grading 2.85 g/t Au, 104.0 g/t Ag, 6.96% Zn, 1.46% Cu, and 1.29% Pb. The reserves contain an estimated 356,000 oz of gold, 10.96 million oz of silver, 519.5 million lb of zinc, 120.9 million lb of copper, and 77.7 million lb of lead.

Chieftain's property includes two former producers – Tulsequah Chief and Big Bull. Cominco operated the mines in the 1950s.

Please visit ChieftainMetals.com for additional information contained in the new feasibility study.