VANCOUVER, British Columbia, November 1, 2012 /PRNewswire/ --
Copper North Mining Corp. ("Copper North" or "the Company") (TSX.V: COL) is pleased to announce results from its National Instrument 43-101 ("NI 43-101") feasibility study update ("the Feasibility Study") for the wholly-owned Carmacks Copper Project (" Carmacks"), located in the Yukon Territory, Canada.
The Feasibility Study concludes that development of Carmacks can be achieved with an after-tax internal rate of return ("IRR") of 15.6%, based on 100% equity financing. The project has an after-tax, net present value ("NPV") of $55.0 million using an 8% discount rate, the U.S Securities and Exchange Commission ("SEC") three year historical copper price of US$3.63/lb, and an exchange rate of US$1: C$1.
President and Chief Executive Officer, Dr. Sally Eyre stated "despite significant cost increases across the mining sector, coupled with a stronger Canadian dollar, the 2012 Feasibility Study demonstrates that Carmacks remains economically viable at current copper prices. The completion of the study is another important step towards de-risking the project. However, to further improve project economics, the Company is considering a brownfields exploration program that would focus on developing the known copper oxide resource potential at Carmacks".The Feasibility Study was prepared in accordance with the requirements of NI 43-101 by M3 Engineering and Technology Corporation ("M3") of Tucson, Arizona with resource estimation provided by Tetra Tech WEI Inc. ("Tetra Tech") (formerly Wardrop Engineering ("Wardrop")) of Vancouver, British Columbia, and reserve estimation and mine costing by Independent Mining Consultants ("IMC") of Tucson, Arizona. Geotechnical, water management and water quality studies were conducted by Golder Associates ("Golder") of Burnaby, British Columbia. Environmental data were collected by Access Consulting Group ("Access") of Whitehorse, Yukon. In the Feasibility Study, M3 recommends that the Company proceed with the development of Carmacks, which is planned as a conventional open-pit oxide mine, with acid heap leach and solvent extraction, electrowinning ("SXEW") process facilities. Copper North will continue its permitting efforts to secure the required licences, so that it can proceed with project planning, financing and execution. Subject to permitting and financing, the Company plans to initiate basic engineering in late 2013 and commence construction in early 2014.
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