McIlvenna Bay project, Canada

6th May 2022 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

McIlvenna Bay project, Canada

Name of the Project
McIlvenna Bay project.

Location
East-central Saskatchewan, in Canada.

Project Owner/s
Foran Mining Corporation.

Project Description
A feasibility study on McIlvenna Bay has outlined a project designed to be a decline/shaft underground mining operation using longhole mining methods for ore extraction.

Ore is expected to be processed through a conventional single-stage crushing circuit, with a semiautogenous grinding mill and ball mill design. Grinding is planned to be followed by a flotation circuit to produce a copper and zinc concentrate for transport from site to Flin Flon for shipment by rail to Canadian smelters and/or offshore. The feasibility study outlines an 18.4-year mine life, based on a planned 4 200 t/d or 1.51-million-tonne-a-year throughput.

Average production is estimated at 72.8-million pounds a year of copper equivalent (30 000 t) over the first 15 years of the mine’s life, which equates to 38.8-million pounds of copper (17 600 t),
63.6-million pounds of zinc (28 900 t), 20 000 oz gold and 486 000 oz of silver.

Included in the feasibility study is the eventual construction of a production shaft to improve mine efficiency at depth.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value (NPV), at a 7% discount rate, of C$1.49-billion and an internal rate of return (IRR) of 46%, with an after-tax payback period of 2.2 years. Base case economics outline a pretax NPV, at a 7% discount rate, of C$678-million and an IRR of 26%.

Capital Expenditure
C$368-million.

Planned Start/End Date
Given the close proximity of the McIlvenna Bay reserve to surface, the company expects a relatively short timeline to initial ore mining and a relatively quick ramp-up.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
Stantec Inc (feasibility study lead, detailed mine design and engineering); Halyard Inc (process and paste plants and surface support infrastructure design); Knight Piésold/Stantec/Halyard (dry stack tailings management facility design); RockEng, working closely with Stantec and the Foran site team (geotechnical model preparation). Micon International (McIlvenna Bay Mineral Resource estimate), and Stantec (mineral reserve estimate).

Contact Details for Project Information
Foran Mining Corporation investor relations, tel +1 604 488 0008 or email info@foranmining.com.
Foran Mining Corporation media inquiries, email foran@secnewgate.co.uk.