A feasibility study, compiled by Lycopodium Minerals Canada, has been completed on TSX-listed Aquila Resources’ 100%-owned zinc- and gold-rich Back Forty project, in Michigan, in the US.
Citing the completion of the Back Forty project’s feasibility study as a “significant milestone for Aquila”, CEO and president Barry Hildred said this week that the completion set the stage for the next steps to develop the deposit.
"Back Forty is well-positioned as a permitted project in a favourable mining jurisdiction that is close to existing infrastructure. We can now focus the company's resources on the pre-construction phase at Back Forty while considering funding alternatives to complete the development of the project."
Results from the completed study showed that the project has an openpit proven and probable mineral reserve of 11.65-million tonnes, and that it has an expected project life of seven years with total payable gold production of 468 000 oz, at an average of 67 000 oz/y.
The mine is expected to deliver 135 000 oz in the first year of its life, and has a total payable equivalent production of 1.1-million-ounces.
The total payable zinc production is about 512-million pounds, at an average of 73-million pounds a year. The total payable zinc equivalent production is about 1.2-billion pounds.
Initial project capital costs are estimated at $294-million with a 24-month construction period, and sustaining capital costs are valued at about $110.6-million.
Gross C1 cash costs of $499/oz gold equivalent or $0.46/lb zinc equivalent and net C1 cash costs of -$590/oz gold or -$1.73/lb zinc, are expected, with a gross all-in sustaining cost (AISC) of $677/oz gold equivalent or $0.62/lb zinc equivalent and net AISC of -$171/oz gold or -$1.34/lb zinc.
Aquila has also identified opportunities to further enhance the overall economics of the project, including the future addition of an underground expansion, the resource company stated.
Aquila senior VP of projects Andrew Boushy said that the results of the study demonstrated that Back Forty was a “compelling project based only on an openpit operation”.
“We see several opportunities to further enhance value that will be advanced during the detailed engineering phase. We have set the bar high for environmental protection and plan to engage local contractors who live in the community in which we will operate,” he commented.