Its official – Xstrata Zinc is advancing the Bracemac-McLeod zinc-copper discovery to the feasibility stage, effective immediately.
A positive outcome of the recently completed scoping study means that Xstrata has now begun an accelerated feasibility study at Bracemac-McLeod in Matagami, Québec. The 50/50 joint venture with Donner Metals and Xstrata Zinc allows Xstrata to spend up to $20 million on a bankable feasibility study in order to earn an additional 15% (bringing it to 65% Xstrata, 35% Donner, just for that one area in the camp).
As a long-time supporter of Donner I am really pleased to see this news. The scoping study was a long time coming from Xstrata, who conducted and funded the whole thing. Getting the go-ahead for feasibility is not a 100% guarantee that Bracemac-McLeod will go into production – but it is rare to see a major company spend money on feasibility without anticipating that there will be a mine. The Matagami Mining Camp is a world-class mining district with 10 past producers, as well as Xstrata’s own low-cost currently producing mine.
Since Xstrata has about another 4 years of mine life left and Bracemac-McLeod apparently will need to be in production well before the Perseverence Mine shuts down, this accelerated feasibility study draws a clear line from the end of the study to near-term production.
The overall objective of the Matagami Project is to supplement and replace production from Xstrata’s mine by finding more new discoveries. Two awards have been won by the Donner/Xstrata exploration team for their work on Matagami for their brand new geological understanding of the camp. Keeping in mind that there has been mining at Matagami for about 50 years, and where geologists before said there was nothing, Donner and Xstrata found over 4 million tonnes of high-grade zinc and copper. With their new understanding of the geology of the camp, the exploration team is currently doing more exploration with the hopes, and real potential, to find more new discoveries to feed that mill.
Left: David Patterson, Chairman, Donner Metals
How bout that ATW & KNB deal comments?
Is the correction (since mid-June) over?
There have been some positive developments this week. Yesterday was a 90% up day, indicating panic buying. Internals turned positive today (possible confirmation tomorrow). Intel had strong earnings after hours today. If the SOX breaks out tomorrow, and the internals hold up, it may be time to jump back in. As long as tomorrow doesn’t give it up…..
Any opinions out there?
Klaus,
With today up as much as it is, has you internals confirmed a positive reading, or do we have to wait for the closing numbers to be able to confirm. You might be too busy right now, shopping and all. Good luck.
Ryan
Hi Ryan, just about to walk my doggie, when I took a peek at Peter’s blog. I must be the the only one who thinks another up leg is coming. Internals today are massively positive. However, this 3 day move has put us into extreme short-term overbought territory. I expect a 1 or 2 day pullback starting late this afternoon or tomorrow. The nature of that pullback will show whether the up leg has started, or whether we need more consolidation time. I’ve stopped selling, but I plan to wait for the pullback to start buying again.
In the intermediate term, I believe we are halfway through the mother of all bear market rallies. If we do get a second leg up, it could last a couple of months or so. When it ends, all bets are off. Regarding the long term, I agree with Peter completely.
Remember, all this is just my opinion (guess), which may or may not turn out to be right.
Klaus,
Thanks for the update. Please keep me updated. I will be watching. What do you think of copper hitting $2.40 again so fast, I am under the impression that copper is a lead indicator of the economy and it seems to be wanting to take flight. Also I am really watching the strange movements of Nat. Gas. What do you think? Talk to you later.
Ryan