precious & practical Spotlight on Saskatchewan gold and base metals
Saskatchewan hosts a diverse wealth of minerals, ranging from potash to uranium, and even diamonds. Here, we spotlight recent news from active gold and base metals projects in the province – which consistently ranks as one of the world’s top mining jurisdictions. BASE METALS Foran Mining
Foran Mining recently released a prefeasibility study on its McIlvenna Bay zinc-copper project in east-central Saskatchewan, 65 km west of Flin Flon, Man. The study outlined a nine-year mine life and annual production of 89.2 million lb. zinc and 27.9 million lb. copper, in addition to 1,7312 oz. gold and 492,667 oz. silver. With a preproduction capex of 18 | CANADIAN
MINING JOURNAL
only $261 million, the underground operation has an after-tax net present value of of $147 million and an internal rate of return of 19.2%. The study used a discount rate of 7.5%. While the study was positive, the timing of its release could have been better. The news came out on Mar. 12, the same day the TSX fell by 12% – on coronavirus fears. Timing notwithstanding, for president and CEO Patrick Soares, the PFS is just the beginning – “More than 16 mines have opened in Flin Flon over its 90 year history – each of those mines doubled in
size from intial reserves to close,” Soares says. “We have an initial nine-year mine life but we believe like most of the mines here, that will continue to grow.” That said, Soares notes that even at depressed spot prices in mid-May when he spoke to CMJ, the project would be cash flow positive to the tune of about $40 million annually. The next step for Foran is to find a partner to help it take McIlvenna Bay to the feasibility stage. The company had been planning to release a feasibility study this year that www.canadianminingjournal.com
