Mining Report: Foran shows McIlvenna Bay feasibility study

A mining company operating near Flin Flon is sharing more positive results.

Foran Mining provided more data for one of the biggest projects near the Flin Flon area, releasing new information about reserves, mineralization and possible profit.

The company announced results from a long-anticipated feasibility study for its McIlvenna Bay property near Hanson Lake, coming after an expansion of its mine plan and after receiving key permits to push the project ahead. The 19-page study covers everything from capital cost and operating cost estimates to further details of the mineralization at the site, which the company is still conducting exploration work on.

The company also shared the site has a total indicated resource of 39.1 million tonnes, with about five million tonnes as an inferred resource. The study uses projections for $3.50 USD per pound for copper, $1.20 USD per pound for zinc, $1,600 USD per ounce of gold and $22.50 per ounce of silver.

“Reserves grade of 1.23 per cent copper, 2.39 per cent zinc, 0.47 grams/tonne gold and 15.3 grams/tonne silver use a $90 USD/tonne net smelter return (NSR) cut-off. These compare to 2020 reserve grades of 1.14 per cent copper, 4.01 per cent zinc, 0.54 grams/tonne gold and 21 grams/tonne silver using a $100 USD/tonne NSR cut-off,” reads the report.

Foran anticipates production of copper equivalent for up to 18 years if a mine is built at the project site, with estimated recovery rates of 91.1 per cent for copper, 79.8 per cent for zinc, 88.6 per cent for gold and 63.2 per cent for silver. Foran is anticipating a $368 million initial net capital cost for building a mine and related infrastructure - tailings facilities, a mine itself, a mill and other items - along with $481 million in sustaining net capital cost, bringing a total estimated price tag of about $849 million for a possible McIlvenna Bay mine.

“The completion of the feasibility study is truly an excellent accomplishment by the entire team at Foran. It is important to be mindful that the study showcases only a snapshot in time of what our initial mine and centralized mill will look like, as we envision scaled expansions and future growth while sequencing in other deposits across the district,” said company executive chairman and CEO Dan Myerson in a Foran-issued statement.

“As we continue to de-risk McIlvenna Bay with the ongoing advancement of the exploration decline, permitting, project financing, and our continued dynamic exploration campaign, I believe we are still in the early innings of understanding what this remarkable district has to offer.”

Last month, Foran received provincial permitting to build a decline at McIlvenna Bay, which company spokespeople say will be used to allow for more underground surveying and testing. The McIlvenna Bay property is located about 85 kilometres from Flin Flon and is accessed by a gravel road off the existing Hanson Lake Road, Saskatchewan Highway 106.

The company has also voiced plans to, if it enters production, have the site be the world’s first mine designed to be carbon neutral since the first day of mine operation.

“The neighbouring Flin Flon district has been operating for close to a century and it is our vision to transform the Hanson Lake District into the next multi-decade mining camp,” Myerson said.

“Critically, Foran will be resolute in our effort to operate a mine of the future, targeting carbon neutrality and creating a sustainable asset for local communities in a decarbonizing world.”