One of the world’s largest gold producers, Goldcorp, have acquired Kaminak Gold Corporation for $520 million. Kaminak Gold Corporation’s main asset is Coffee Gold Project that is located South of Dawson City in Yukon, Canada. This project expects to generate a gross revenue of $2 billion and will employ 500 people. The project also received positive sentiments and support from the community as the Lynn Hutton, president of the Chief Isaac Group of Companies, a development arm of the Tr’ondëk Hwëch’in First Nation in Dawson City said “Yukon needs something like this [ Coffee Gold Project] ”
The Feasibility Study was initiated in July, 2014 after the release of the Preliminary Economic Assessment in June 2014 and commenced with infill drilling, geotechnical investigations and other fieldwork to support the study. Permitting applications for the Coffee Gold mine ready to submit to the Yukon Environmental and Socio-economic Assessment Board (YESAB) by summer of 2016. Goldcorp is aiming to begin mine construction in 2018.
Some Key Project Statistics
- 3.7 million tonnes averaging 1.45 g/t Au for 2,968,000 ounces of gold Indicated
- 52.4 million tonnes at an average grade of 1.31 g/t Au for 2,212,000 ounces of gold Inferred
- ore mining rate of 5 million tonnes per annum. Average annual gold production in excess of 200,000 ounces for the first five years
- Heap leach will be used to process the ore
- 10-year mine life
- Strip Ratio is 5.7:1
- At a gold price of US$1,150/oz and an exchange rate of C$1.00 to US$0.78, the Coffee Project base case estimate generates an after-tax net present value (NPV) at a 5% discount rate of C$455 million and an internal rate of return (IRR) of 37%.
- A payback of 1.5 years pre-tax and 2.0 years after-tax
- Total operating cost $24.01/ tonne
For More information of Coffee Project: http://www.kaminak.com/coffee/overview/
Original Article Source: http://www.cbc.ca/news/canada/north/goldcorp-buy-kaminak-coffee-gold-dawson-city-1.3579131