Positive Feasibility Study Results on Yukon Coffee Gold Project
VANCOUVER, BC - Kaminak Gold Corporation reported the results of a Feasibility Study prepared in accordance with National Instrument 43-101 (NI 43-101) for the Company's 100% owned Coffee Gold Project located 130 km south of Dawson City in Yukon Territory, Canada. The Feasibility Study indicates that the Coffee Project represents a robust, rapid pay-back, high margin, ten year open pit mining and heap leach project that works in the current gold price environment. As such, Kaminak intends to move forward into mine permitting to support mine construction, which is planned for mid-2018.
The proposed mine will operate over an initial ten year mine-life with average annual gold production in excess of 200,000 ounces for the first five years (excluding the initial 3 month ramp-up period), and average annual life-of-mine gold production of 184,000 ounces. Initial capital expenditure to fund construction and commissioning is estimated at C$317 million, with a life-of-mine capital cost of C$478 million (including C$60 million in closure costs). The all-in sustaining cash costs are estimated to be US$550 per ounce of gold produced. The project is expected to have a significant impact on Yukon's GDP, generating over $2 billion of gross revenue a nd contributing 480 permanent, high paying jobs.
Eira Thomas, Kaminak President and CEO said, “This feasibility study firmly establishes the Coffee Project as one of the best undeveloped gold projects by value and margin that works in the current gold-price environment. The Coffee Project further benefits from being a simple, open pit, heap leach mining opportunity, situated near infrastructure that delivers low all in sustaining costs and pays back capital in under two years". She further noted, "Kaminak feels privileged to be working in the pro-mining jurisdiction of Yukon where we enjoy strong relations with all levels of government, including our local First Nations, with whom we have worked alongside, collaboratively since 2010."