Schaft Looks Even Better

The recently completed Preliminary Economic Assessment on the Schaft Creek porphyry deposit updated the 2013 study and “resulted in a significant increase in the after-tax NPV and IRR and demonstrated the potential for a large mining operation with low C1 cost and AISC per pound of copper” according to a Copper Fox news release. The junior retains a 25% interest with Teck Resources holding the balance. The study is based on a Measured and Indicated Resource that hosts 7.7 billion pounds of copper and 7 million ounces of gold. The PEA base case used a long-term copper price of $3.25 and $1500 for gold, leading to an NPV (8%) is $842 million. That figure, of course, is substantially higher using prices closer to the current and consensus levels.

Teck also holds a half interest in the nearby Galore Creek deposit. On Teck’s website they note: “Galore
Creek is one of the world’s largest undeveloped copper-gold-silver deposits.” The other half interest in Galore is held by Newmont. The gold major enhanced its interest in the GT earlier this year with a C$430 million acquisition of GT Gold, giving it control of the Tatogga porphyry copper-gold deposit. Teck and Newmont, between them, control 3 huge deposits in close proximity. Subsequent issues will present some insights into the long-term plans of these majors in the GT.