SUMMARY
Western Copper and Gold is solely focused on developing the world-class Casino project, located in the politically stable Yukon Territory.
You can read more about the Casino project below, or visit the Casino project website.
Western has been developing the Casino project since 2008. Historically, two pre-feasibility studies and a full feasibility study were published on the project. In 2020, an updated resource on the project was released and most recently, in June 2021 a Preliminary Economic Assessment was published showing robust economics, the report is available here (link to tech report).
A Project Proposal for the Casino Mine was submitted to the executive committee of the Yukon Environmental and Socioeconomic Assessment Board (YESAB) in January 2014 and underwent several rounds of adequacy review information requests from 2014 through 2016. On February 18, 2016, the Executive Committee determined that the Casino Mine Project requires a Panel Review, the highest level of environmental and socio-economic assessment administered by YESAB.
LOCATION
The Casino porphyry copper-gold-molybdenum deposit is located in west central Yukon, in the northwest trending Dawson Range mountains, 300 km northwest of the territorial capital of Whitehorse.
To the west, Newmont is developing the Coffee Project. To the north and to the west, White Gold Corp. has a large number of claims and is actively exploring. Approximately 100 km to the east, Minto Explorations Ltd. operates the Minto Mine, which produces copper concentrate.
The project is located on Crown land administered by the Yukon Government and is within the Selkirk First Nation traditional territory and the Tr’ondek Hwechin traditional territory lies to the north. The proposed access road crosses into Little Salmon Carmacks First Nation traditional territory to the south. The White River First Nation and Kluane First Nation are downstream from the project.
The Casino Property lies within the Whitehorse Mining District and consists of 1,136 full and partial Quartz Claims and 55 Placer Claims acquired in accordance with the Yukon Quartz Mining Act. The total area covered by Casino Quartz Claims is 21,126.02 ha. The total area covered by Casino Placer Claims is 490.34 ha.
In mid 2019, the Company acquired the adjacent property to the west referred to as the Canadian Creek property from Cariboo Rose Resources Ltd.
RESOURCE
The Mineral Resources are based on a block model developed by IMC during June 2020. This updated model incorporated the 2019 Western Copper drilling and updated geologic models. It also includes some 2010 through 2012 Western Copper drilling that was not available for the previous Mineral Resource estimate done in 2010.
The Measured, Indicated, and Inferred Mineral Resources reported herein are contained within a floating cone pit shell to demonstrate “reasonable prospects for eventual economic extraction” to meet the definition of Mineral Resources in NI 43-101.
Table 1‑1: Mineral Resource for Mill Material at C$5.70 NSR Cutoff
| Resource Class |
Tonnes Mt |
NSR ($/t) |
Copper (%) |
Gold (g/t) |
Moly (%) |
Silver (g/t) |
CuEq % |
Copper (mlbs) |
Gold (moz) |
Moly (mlbs) |
Silver (moz) |
| Measured | 145.3 | 38.08 | 0.31 | 0.40 | 0.025 | 2.1 | 0.74 | 985.8 | 1.9 | 80.6 | 9.8 |
| Indicated | 2,028.0 | 19.10 | 0.14 | 0.17 | 0.016 | 1.4 | 0.33 | 6,448.5 | 10.9 | 731.0 | 90.4 |
| M+I | 2,173.3 | 20.37 | 0.16 | 0.18 | 0.017 | 1.4 | 0.36 | 7,434.3 | 12.7 | 811.6 | 100.2 |
| Inferred | 1,430.2 | 14.50 | 0.10 | 0.14 | 0.010 | 1.2 | 0.24 | 3,240.4 | 6.4 | 322.8 | 53.5 |
Table 1‑2: Mineral Resource for Leach Material at C$5.46 NSR Cutoff
| Resource Class |
Tonnes Mt |
NSR ($/t) |
Copper (%) |
Gold (g/t) |
Silver (g/t) |
AuEq (g/t) |
Copper (mlbs) |
Gold (moz) |
Silver (moz) |
| Measured | 37.2 | 19.72 | 0.05 | 0.45 | 2.8 | 0.48 | 39.3 | 0.5 | 3.3 |
| Indicated | 180.2 | 9.54 | 0.03 | 0.21 | 1.7 | 0.23 | 127.2 | 1.2 | 10.0 |
| M+I | 217.4 | 11.28 | 0.03 | 0.25 | 1.9 | 0.27 | 166.5 | 1.8 | 13.3 |
| Inferred | 31.1 | 7.60 | 0.03 | 0.17 | 1.7 | 0.18 | 17.2 | 0.2 | 1.7 |
Table 1‑3: Mineral Resource for Copper, Gold, and Silver (Mill and Leach)
| Resource Class |
Tonnes Mt |
NSR ($/t) |
Copper (%) |
Gold (g/t) |
Silver (g/t) |
Copper (mlbs) |
Gold (moz) |
Silver (moz) |
| Measured | 182.4 | 34.34 | 0.25 | 0.41 | 2.2 | 1,025.1 | 2.4 | 13.1 |
| Indicated | 2,208.3 | 18.32 | 0.14 | 0.17 | 1.4 | 6,575.6 | 12.1 | 100.5 |
| M+I | 2,390.7 | 19.54 | 0.14 | 0.19 | 1.5 | 7,600.7 | 14.5 | 113.5 |
| Inferred | 1,461.3 | 14.35 | 0.10 | 0.14 | 1.2 | 3,257.6 | 6.6 | 55.2 |
Notes:
- The Mineral Resources have an effective date of 3 July 2020 and the estimate was prepared using the definitions in CIM Definition Standards (10 May 2014).
- All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.
- Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
- Mineral Resources for leach material are based on prices of US$2.75/lb copper, US$1,500/oz gold and US$18/oz silver.
- Mineral Resources for mill material are based on prices of US$2.75/lb copper, US$1,500/oz gold, US$18/oz silver, and US$11.00/lb moly.
- Mineral Resources are based on NSR Cutoff of C$5.46/t for leach material and C$5.70/t for mill material.
- NSR value for leach material is as follows:
NSR (C$/t) = $12.65 x copper (%) + $41.55 x gold (g/t) + $0.191 x silver (g/t), based on copper recovery of 18%, gold recovery of 66% and silver recovery of 26%. - NSR value for hypogene sulphide mill material is:
NSR (C$/t) = $60.18 x copper (%) + $41.01 x gold (g/t) + $214.94 x moly (%) + $0.355 x silver (g/t), based on recoveries of 92.2% copper, 66% gold, 50% silver and 78.6% moly. - NSR value for supergene (SOX and SUS) mill material is:
NSR (C$/t) = $65.27 x recoverable copper (%) + $42.87 x gold (g/t) + $142.89 x moly (%) + $0.425 x silver (g/t), based on recoveries of 69% gold, 60% silver and 52.3% moly. Recoverable copper = 0.94 x (total copper – soluble copper). - Table 14‑6 accompanies this Mineral Resource statement and shows all relevant parameters.
- Mineral Resources are reported in relation to a conceptual constraining pit shell in order to demonstrate reasonable prospects for eventual economic extraction, as required by the definition of Mineral Resource in NI 43-101; mineralization lying outside of the pit shell is excluded from the Mineral Resource.
- AuEq and CuEq values are based on prices of US$2.75/lb copper, US$1,500/oz gold, US$18/oz silver, and US$11.00/lb moly, and account for all metal recoveries and smelting/refining charges.
PRELIMINARY ECONOMIC ASSESSMENT
The Preliminary Economic Assessment (PEA) considered the Casino 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.
The PEA supersedes all previous studies and incorporates the updated mineral resource with an effective date of July 3, 2020. The PEA also incorporates outcomes of the Best Available Tailings Technology Study (the BATT Study) completed in 2018 with participation by First Nations, 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.
The PEA 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.
Highlights
- $2.3 billion NPV (after-tax (8%))
- 19.5% IRR (after-tax)
- Cashflow over the first four years of $965 million per year
- Base case development contemplates 25-year mine life
- Extended Two-Phase development contemplates a 47-year mine life
- Payback period of 3 years
- LOM strip ratio of 0.38:1
Note using Base Case metal prices of: Cu: US$3.35/lb, Au: US$1,600/oz, Ag: US$24/oz, Mo: US$12/lb
