Western Australian-headquartered and privately-owned BMC Minerals has released an updated feasibility study for its Kudz Ze Kayah silver and zinc project located in Canada’s Yukon, outlining a low cost, high margin operation which affirms the project’s place as one of the world’s top near-term silver-zinc operations.
BMC Mineral’s President & CEO Mr Scott Donaldson was ebullient on the upgraded figures, stating:
“The updated DFS confirms the Kudz Ze Kayah Project is expected to be an internationally significant, high grade silver project with strong zinc, copper and gold credits.
“Its low operating costs are anticipated to deliver excellent operating margins and cashflows.
“When in production KZK will sit in elite company being one of only a handful of active mining projects worldwide that are in the global top twenty producers for both silver and zinc production. This is independent of the other metal credits.
“This is one of the most compelling projects I have been associated with and I look forward to continuing to work with the Kaska First Nations, businesses and the Yukon Government assessors and regulators to deliver it into production.”
The upgraded DFS details a largely open pit operation that has a net present value of US$617m with a capital cost of US$376m.
Other DFS highlights include:
- After Tax IRR: 45.9%
- Operating Margin: 32.1%
- C1 Cash Cost of Production Silver per oz: $22.13
- All-in-Sustaining-Cost Silver per oz: $15.92
- C1 Cash Cost Zinc per lb: $0.39
- All-in-Sustaining-Cost Zinc per lb: $0.18
- Targeted First Production Late 2023
- Reserve life of Mine (ABM Mine only): 9 years
Mine construction time is estimated to be 20 months which would be capable of processing approximately two million tonnes per year, delivering a payback period of just 1.8 years.
The Kudz Ze Kayah project is a large and high-grade deposit, with a Mineral Reserve of 15.7 million tonnes at 138 g/t silver, 1.3 g/t gold, 5.8% zinc, 1.7% lead and 0.9% copper.
Mineralisation consists of two major zones, known as ABM and Krakatoa which contain continuous volcanogenic massive sulphides (VMS).
The Kudz Ze Kayah mineralisation lies in a known VMS minerals province, known as the Finlayson Lake district of the Yukon which hosts a number of historic mines and deposits.
