Snowfield study enhances prospects for world-class combined B.C. gold mine
As Silver Standard releases its new preliminary study for its Snowfield deposit, a potential combination with Seabridge Gold's neighboring KSM Project, has reignited visions of a world-class B.C. gold mine
Author: Dorothy Kosich
Posted: Wednesday , 02 Jun 2010
RENO, NV -
mineweb.com
A preliminary assessment on Silver Standard Resources' Snowfield Project released Tuesday helps reinforce the old adage that, when it comes to mining, location is everything.
Seabridge Gold's Kerr-Sulphurets-Mitchell (KSM) Project, located 65 kilometers northwest of the old mining town of Stewart, British Columbia, has already garnered considerable excitement with a March feasibility study which identified proven and probable reserves of 30.2 million ounces of gold, 133.1 million ounces of silver, more than 7 billion pounds of copper and 210 million pounds of molybdenum.
Now neighbor Snowfield is believed to have measured and indicated resources of 20 million ounces of gold, 51.9 million ounces of silver, 2.2 billion pounds of copper and 196.6 million pounds of moly, according to a preliminary assessment by Wadrop Engineering.
The study found Snowfield can be operated as an open-pit mine with a mine life of 23 years. Average annual production could include 607,000 ounces of gold, 57.8 million pounds of copper, 1.5 million ounces of silver, and 4.5 million pounds of moly. The initial project capex is estimated at US$3.4 billion.
Snowfield is located immediately east of KSM along the eastern margin of the Coast Mountain Range in northern British Columbia. A number of miners have speculated that the combination of KSM and Seabridge could result in the creation of a world-class deposit.
By some estimates, the aggregate gold resources alone of the two projects combined could be as much as 85 million ounces of gold.
A March 2010 preliminary feasibility study of KSM, which was also authored by Wadrop Engineering, estimated a mine life of 37 years with a project capex of US$3.37 billion. Annual production is forecast to be 634,000 ounces of gold, 158 million pounds of copper, 2.6 million ounces of silver, and 2.1 million pounds of moly.
The decision of the B.C. provincial government to move forward with the Northwest Transmission Line along Highway 37 would benefit both projects.
At first, it was believed that Silver Standard would consider selling its Snowfield Project in the belief that the company preferred to concentrate on being a primary silver producer. However, with the departure of former CEO Robert Quartermain, a geologist, Silver Standard Chairman Peter Tomsett, the last CEO of Placer Dome, has recently brought on former BHP Vice President, Resourcing and Development, John Smith as the new Silver Standard CEO.
In a news release late last month, Tomsett stressed that Silver Standard is now making the transition from an exploration company "into a substantial operating and development company." A former oil company executive, Smith has specialized in mine expansion and development during his time with BHP. |
