Boliden closing in on deal for Lundin’s European mines
A deal would cement Boliden’s position as one of Europe’s biggest producers of zinc.
Silvercorp announced on Thursday that it received a positive preliminary assessment for its Silvertip silver-lead-zinc project in northern British Columbia. Silvercorp’s stock was up 4% on the TSX on Friday.
The report prepared by Golder Associates favoured a small mine and mill operating seasonally at 500 tonne per day or 72,000 tonne per year.
“The initial capital cost of the project is estimated to be $US49 million with sustaining capital costs over the remaining mine life (21 years) estimated at $US54.2 million. The payback period is estimated at 4 years for the base case and 2 years for the upside case after reaching commercial production,” said the company’s statement.
The report looked at the economics for mine and mills at the 200 tonne per day level and the 1,000 tonne per day level, but considered them less optimal. The preliminary assessment is based upon a mineral resource update detailed in its NI 43-101 technical report.
Silvercorp said that it intends to complete an environmental assessment study, submit an application for a small mine permit and complete a feasibility study for the Silvertip project in fiscal 2012.
Silvercorp Metals Inc. is a Canadian-based primary silver producer with mining, development and exploration projects located in the People’s Republic of China and British Columbia.
Michael McCrae wrote this story. You can contact him at [email protected].
