Resource World Magazine

a p r i l / m a y 2 0 1 5 www.resourceworld.com 7 2 3 4 metal assays found at the project to date. The early 2014 initial resource estimate for Deep Kerr pegged an inferred resource of 515 million tonnes grading 0.53% copper and 0.36 g/t gold (6.1 billion lbs copper and 5.9 million oz gold). This deposit is suitable for an underground mining opera- tion. In June 2014, a drill program began to expand the Deep Kerr deposit and to seek other high-grade deposits. In September 2014, another higher grade deposit was found beneath the Iron Cap deposit. An expanded resource estimate for Deep Kerr is expected in the near future. The company just reported the Iron Cap Lower Zone hosts an inferred resource of 164 million tonnes averaging 0.59 g/t gold and 0.27% copper (3.1 million oz gold and 961 million lbs copper). Seabridge has other projects, includ- ing the advanced-stage Courageous Lake Project 240 km northeast of Yellowknife, Northwest Territories that hosts proven and probable reserves of 6.5 million oz gold. Yamana gOld inc. [Yri-TSX] Yamana Gold is a producer with seven mines in North and South America. It also has the advanced stage Cerro Moro gold-silver project in the Patagonia region of southern Argentina. Cerro Moro hosts probable resources of 1,954,000 tonnes grading 11.38 g/t gold, for 715,000 oz gold contained in a number of high-grade epi- thermal gold and silver deposits. Indicated resources stand at 3,210,000 tonnes of 2.23 g/t gold and 190 g/t silver. Inferred resources are 4,427,000 tonnes of 1.96 g/t gold and 101 g/t silver. In February 2015, Yamana announced that it will go ahead with the construction of the Cerro Moro Mine. Plans call for an average annual production in the first three years of full production of 135,000 oz gold and 6.7 million oz silver. The life-of- mine (LOM) estimates include annual produc- tion of 102,000 oz gold and 5 million oz silver at a throughput of 1,000 tonnes per day. Cash costs are expected to be $380 to $400/oz for gold and $5.35 to $5.50 for silver, with all-in sustaining costs of $547 to $557/oz for gold and $7.60 to $7.80/ oz for silver. These resource and produc- tion estimates only take into account current resources and not the expected additions from further exploration and new discoveries. Total project capital for the life-of-mine is expected to be $398 million that includes $265 million in initial capital and $133 mil- lion LOM sustaining capital. The after-tax IRR is in the range of 23-26% with a pay- back within three years. A formal groundbreaking ceremony will take place in late 2015 with produc- tion anticipated to begin in the second half of 2017. EXETEr rESOUrcE cOrp. [Xrc-TSX; Xra-nYSE; EXb-FSE] Exeter Resource has a 100% interest in the Caspiche gold-copper-silver project located 120 km southeast of Copicó, northern Chile. This is a big project that has under- gone a Preliminary Economic Assessment. Measured and indicated resources (oxide and sulphide) are pegged at 1,403.6 million tonnes grading 0.51 g/t gold, 0.19% cop- per and 1.20 g/t silver. Centrally located in Chile's largest gold district, the Caspiche Project is situated midway between Barrick Gold's Cerro Casale and the Kinross Gold Maricunga Mine. The 2014 PEA considered three options. Option 1 would be a 30,000 tpd heap leach oxide gold mine producing 122,000 gold equivalent (AuEq) ounces annually over a 10-year mine life. Projected average total cash operating costs would be US $589/oz AuEq. Under Option 1, pre-tax NPV (5% discount) is US $355 million at US $1,300/ oz, an IRR of 34.7% with a payback period of 3.4 years. After-tax (27% tax rate) NPV (5%) would be US $252 million and an IRR of 28.5%. Estimated capex is US $210 million. Option 2 is a 60,000 tpd open pit, heap leach oxide mine producing 289,000 oz AuEq or 125 million CuEq lbs/year. Production is estimated at 4.9 million AuEq oz for 18 years. Total cash costs are US $551/oz AuEq. Initial capex would be US $375 million. There is a pre-tax NPV (5%) of US $967 million with an IRR of 27.2%. Option 3 would be an accelerated 60,000 tpd, open pit, heap leach gold mine transitioning to a 27,000 tpd underground copper-gold mine. Production would aver- age 344,000 oz AuEq, or 147 million lbs CuEq/year over a 42-year mine life. Exeter has $30 million in its treasury. rUbicOn minEralS cOrp. [rmX-TSX; rbY-nYSE mKT] Rubicon Minerals has advanced its 100%- owned Phoenix underground gold project, Red Lake, northwest Ontario, to the point where production is expected to start in the near future. The Red Lake gold dis- trict is home to Goldcorp's high-grade, world-class Red Lake Mine. Mill con- struction at Phoenix is on budget and on schedule with the company now stockpil- ing mineralized material on surface from underground stope development on the 244- and 305-metre levels. The project is fully permitted for initial production at 1,250 tpd, although this will be ramped up to an average life-of-mine 1,900 tpd. At a cut-off grade of 4.0 g/t gold, the Phoenix Project hosts 4,120,000 tonnes grading 8.52 g/t gold in the indicated category, for 1,129,000 oz gold. Inferred resources stand at 7,452,000 tonnes grad- ing 9.26 g/t gold, for 2,219,000 oz gold. Recent drilling suggests resources can be expanded. A Preliminary Economic Assessment has been prepared by independent SRK Consulting (Canada) Inc. The PEA contem- plates a 13-year life-of-mine production of 2.19 million oz gold with an average annual production of 165,300 oz. After mostly long-hole stoping as the underground min- ing method, the diluted grade to the mill would be 8.1 g/t gold. Cash operating costs are estimated to be C $629/oz with all-in sustaining costs pegged at C $913/oz. Gold recoveries are projected to be 92.5%. At a gold price of US $1,200/oz, the

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