{"id":505439,"date":"2021-06-22T08:13:39","date_gmt":"2021-06-22T12:13:39","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/western-copper-and-gold-announces-positive-pea-on-casino\/"},"modified":"2021-06-22T08:13:39","modified_gmt":"2021-06-22T12:13:39","slug":"western-copper-and-gold-announces-positive-pea-on-casino","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/western-copper-and-gold-announces-positive-pea-on-casino\/","title":{"rendered":"Western Copper and Gold Announces Positive PEA on Casino"},"content":{"rendered":"
\n

PR Newswire<\/p>\n<\/p><\/div>\n

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\n
\n $2.3 billion<\/span> After-Tax NPV (8%) at Base Case metal prices<\/i>\n <\/p>\n

\n After-Tax IRR 19.5% at Base Case metal prices<\/i>\n <\/p>\n

\n Cashflow over the first four years of $965 million<\/span> per year at Base Case metal prices<\/i>\n <\/p>\n

\n Base case development contemplates 25-year mine life<\/i>\n <\/p>\n

\n Extended Two-Phase development contemplates a 47-year mine life<\/i>\n <\/p>\n

\n Base Case metal prices:\u00a0 Cu: US$3.35<\/span>\/lb, Au: US$1,600<\/span>\/oz, Ag: US$24<\/span>\/oz, Mo: US$12<\/span>\/lb<\/i>\n <\/p>\n

\n VANCOUVER, BC<\/span>, June 22, 2021<\/span> \/PRNewswire\/ – Western Copper and Gold Corporation (“Western” or the “Company”) (TSX: WRN) (NYSE American: WRN) is pleased to release the results of its Preliminary Economic Assessment (the “PEA”, or “Study”) on its wholly-owned Casino copper-gold-molybdenum deposit in the Yukon<\/span> (“Casino” or the “Project”).\u00a0 The Study considered the Project being constructed as an open pit mine, with a concentrator processing nominally 120,000 tonnes per day and a gold heap leach facility processing nominally 25,000 tonnes per day.<\/p>\n

The Study supersedes all previous studies and incorporates the updated mineral resource with an effective date of July 3<\/span>, 2020.\u00a0 The Study also incorporates outcomes of the Best Available Tailings Technology Study (the “BATT Study”) completed in 2018 with participation by First Nations, the Yukon Environmental and Socio-economic Assessment Board (“YESAB”) and the Yukon Government. The design concept for the tailings management facility (“TMF”) also reflects the guidance received from the Independent Engineering Review Panel.<\/p>\n

The Study examines the development of the Casino Project, which comprises the processing of 1.3 billion tonnes of mineralized material for both the mill and heap leach, with deposition of mill tailings and mine waste in the TMF facility consistent with the design concepts considered during the BATT Study as a base case development.<\/p>\n

“I am extremely pleased with the results from this PEA”, said Paul West-Sells<\/span>, President & Chief Executive Officer. “This Study reaffirms Casino as one of the very few long-life copper-gold projects with robust economics in a top mining district, the Yukon.\u00a0 We look forward to continuing working with our recent strategic investor, Rio Tinto, First Nations and other stakeholders to advance this project through additional engineering to feasibility.”<\/p>\n

In this news release, unless otherwise indicated, all further references to “$” are to Canadian dollars and references to “US$” are to United States<\/span> dollars.<\/p>\n

\n HIGHLIGHTS<\/b>\n <\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n

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\n Base Case*<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n
\n Payback period, years<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n 3.0<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n NPV pre-tax (8% discount)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n $3.62 billion<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n NPV after-tax (8% discount)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n $2.33 billion<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n LOM pre-tax free cash flow<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n $13.0 billion<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n LOM after-tax free cash flow<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n $9.1 billion<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n IRR pre-tax (100 % equity)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n 23.3%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n IRR after-tax (100% equity)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n 19.5%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n Initial Capital Investment<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n $3.25 billion<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n Total mineralized material mined<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n 1.3 billion tonnes<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n Mill mineralized material<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n 1.1 billion tonnes<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n Heap leach mineralized material<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n 204 million tonnes<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n Mill operation<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n 25 years<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n Heap leach operation<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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\n 23 years<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n
\n LOM strip ratio<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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\n 0.38:1<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

Base Case metal prices: Cu: US$3.35<\/span>\/lb, Au: US$1,600<\/span>\/oz, Ag: US$24<\/span>\/oz, Mo: US$12<\/span>\/lb. <\/p>\n

\n KEY CHANGES FROM THE PREVIOUS STUDY<\/b>\n <\/p>\n

The engineering design basis for this PEA is similar in most respects to earlier studies but includes several significant design improvements.\u00a0 The major changes include:<\/p>\n

\n Tailings Management Facility<\/i>\n <\/p>\n

The TMF is sized to provide sufficient capacity to store approximately 712 Mt<\/span> of tailings and 500 Mt<\/span> of mining waste rock and overburden materials. The remaining 415 Mt<\/span> of non-acid generating (“NAG”) tailings will be used for dam construction following classification with hydrocyclones and dewatering screens. The TMF for the PEA includes design changes based on the recommendations from the BATT Study.\u00a0 The key changes to the TMF design concept include:<\/p>\n