Granite Creek Copper – Key Takeaways From The Preliminary Economic Assessment At The Carmacks Project
Tim Johnson, President and CEO of Granite Creek Copper Ltd (TSX.V:GCX – OTCQB:GCXXF), joins us to break down the metrics and key takeaways from the recently announced Preliminary Economic Assessment (PEA) on the Carmacks Project in the Yukon.
- Base case metal prices of US$3.75/lb Cu, US$1,800/oz Au and US$22/oz Ag:
- Pre-tax NPV 5% of C$324 million and 36% IRR
- After-tax NPV 5% of C$230 million and 29% IRR
- Case 1 metal prices of US$4.25/lb Cu, US$2,000/oz Au and US$25/oz Ag:
Pre-tax NPV 5% of C$475 million and 48% IRR
After-tax NPV 5% of C$330 million and 38% IRR
- Mine life of nine years at 7,000 tonnes per day with clear exploration potential to extend mine life with four target areas within 1km of the current resource.
- Capital cost of C$220m with payback of 2 years from commencement of production.
In addition to the copper and gold metals pricing sensitivity numbers that could further boost economics, Tim highlights that there is ongoing work from the Company and 3rd party contractors to continue improving the recovery rates of the metals which substantially impacts economics. We wrap up highlighting the large amount of exploration upside still on the project, at 4 key target areas, to increase the sulfide resources and further improve the blended oxide and sulfide mix for recovery purposes.