Issue link: http://resourceworld.uberflip.com/i/318453
j u n e / j u l y 2 0 1 4 www.resourceworld.com 39 mineralization more than 1.4 km west of the easternmost drilling in the Far East Zone. Mineralization in the West Zone is continu- ous from surface to over 350 metres and is open at depth and along strike. Highlights include Hole 139 which intercepted 371.3 metres of PGM-Ni-Cu mineralization grading 2.76 g/t platinum equivalent (Pt Eq.) or 0.66% nickel equiv- alent (Ni Eq.). The lower interval in this hole intercepted 140.6 metres of 3.99 g/t Pt Eq. or 0.95% Ni Eq. and ended in high grade mineralization of over 5 g/t Pt. Eq. Metallurgical optimization test work continues on representative samples from disseminated mineralization at Wellgreen. Meanwhile, engineering studies are also under way to investigate optimizing the project using a staged production approach that will review a series of lower capex throughput with higher grade extraction concepts. Victoria Gold Corp. [VIT-TSXV] is a development-stage company with permits to construct the 100%-owned Eagle gold mine 85 km north of Mayo. The property, also known as Dublin Gulch, hosts 6.3 million ounces of gold in the indicated and inferred categories. The company has about $27 million in its treasury. The proposed Eagle gold mine will pro- duce doré bars from a conventional open pit mining operation with a three-stage crushing plant, in-valley heap leach and a carbon-in-leach adsorption-desorption gold recovery plant. There is year-round road access to the site and a 100-person all-season camp. In addition, The Eagle gold project has received the Quartz Mining Licence, completed the Environmental Assessment process and has a signed Comprehensive Cooperation and Benefits Agreement with the local Nacho Nyak Dun First Nation. Gold production is forecast to be 212,000 ounces/year at US $542/oz in first five years and 192,000 oz/yr at US $615/oz for life-of-mine. NPV is $381 million (pre- tax) at a 5% discount with a 24% IRR at US$1,325/oz. Payback period is three years at US $1325/oz gold. Capital cost is estimated at $430 million. Production is targeted for 2017. n PwC Presents its 46th annual BC Mining industry survey PwC shared the results of their annual PwC BC Mining Survey at a news con- ference on Wednesday, May 14, as part of BC Mining Week. The PwC survey "examines the 2013 aggregate year-over-year financial performance of BC's coal and metals mining sector." The 37 participants in the survey include 21 mine operators, 14 development projects and two exploration projects. Panel member, Honourable Bill Bennett, Minister of Energy and Mines and Minister Responsible for Core Review, spoke recognizing that 2013 was a chal- lenging year for BC's resource sector. Gross mining revenue in 2013 (8.5 billion) decreased by7% compared to 2012 (9.9 billion). The significant price drop is attributed to depressed prices for metallurgical coal, copper, silver and gold. Most metal prices for 2013 averaged below 2012 prices. However, according to the survey, overall shipments of commodities increased in 2013. In 2013, shipments for metallurgical coal totaled 28.1 million tonnes; in 2012 24.2 million tonnes were shipped. Copper shipments increased to 884,000 tonnes in 2013 compared to 787,000 tonnes shipped in 2012. There were other positive numbers to report. There were more people work- ing in the mining industry in 2013 with the number of jobs increasing to 10,720 compared to 10,410 for 2012. Gavin Dirom, President and CEO, Association for Mineral Exploration in BC said, "On the positive side, with reported exploration expenditures of $476 million in 2013, BC attracts nearly 20% of exploration spending Canada, com- pared to just 6% in 2001. Marianne Carroll, survey co-author and a manager in PwC's B.C. mining practice stated that, "In spite of some financial challenges over the last couple of years, BC's mining sector continues to move forward. Since 2011, the Copper Mountain, New Afton, and Mount Milligan mines in B.C. have come into pro- duction. The province has a number of new mines under construction and the new Red Chris and Roman mines should open in 2014." The report addresses issues around land access including disputed land claims, "particularly those surrounding relationships between various levels of government and First Nations." The report cites a recent Fraser Institute survey on BC's mining policy performance which found that uncertainty concerning disputed land claims was the "single greatest factor deterring mining invest- ment in British Columbia over the past five years." According to the Fraser Institute survey, 33% of respondents reported that they were strongly deterred and another 30% were mildly deterred. Panel member, Bob Quartermain, president and CEO of Pretium Resources Inc. said timely permitting is a significant issue for the advancement of proj- ects. Minister Bill Bennett said he was "committing government" to do its part to support the resource industry by working toward streamlining the process. The PwC's survey is optimistic that metal prices will improve. "Analysts are forecasting prices of most precious and non precious metals produced in BC to rise over the next 12 months." A moderate recovery is predicated for coal prices, "driven by continued momentum of Asian imports." Given BC's access to Asian markets, its political stability, skilled work force and rich resources BC is well positioned to benefit from a recovering metals market. n