OFR-128-77 Economic Mining Feasibility Studies Of Selected Mineral Deposit Types In The Western Brooks Range, Alaska

This report evaluates the economic Mining feasibility of four selected mineral deposit types that can be anticipated to be found in (d)(2) lands in the western Brooks Range, Alaska. The major assumption made for this study is the availability of a rail system for transporting equipment and concentrates for the base metal mines. Commodity prices used are those in existence in July 1976. Mine models were established based on known deposits and then evaluated. A lead-zinc-silver-barite deposit for which grades were available but ore reserves were assumed would require approximately 25% higher ore grades or higher metal prices to yield a 15% discounted cash-flow rate of return an the investment if mined at a rate of 10,000 tons per day open pit methods. Large copper-zinc mineral deposits could be mined economically at rates either of 5,000 tons per day underground or 10,000 tons per day by open pit methods. A high-grade copper deposit require a copper price of over one dollar ryes pound to yield an economic profit to be mined at 2,000 tons per day by underground methods. A small high-grade gold underground mine would require a gold price of about $295 per ounce to yield a 20% discounted cash-flow rate of return on investment if all new mine equipment were used and if existing labor rates were paid: Enterprising mining groups operating as partnerships might be able to operate this mine profitably at a gold price of about $152 per ounce, perhaps slightly less.