Cumberland Announces Feasibility Study Results on the Meadowbank Gold Project.VANCOUVER, British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography -- CUMBERLAND RESOURCES LTD LTD 1 Laron-type dwarfism 2 Leukotriene D 3 Long-term depression, see there 4. Long-term disability . (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :CLG CLG College CLG Ceiling CLG Collagenase CLG Cumann Lúthchleas Gael (Club of the Gaelic Athletic Association) CLG Community Liaison Group CLG Calling Line CLG Change to Lower Grade (civilian personnel) )(AMEX AMEX See: American Stock Exchange :CLG) is pleased to announce the results from the Feasibility Study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. ("Study") on the Company's 100% owned Meadowbank Gold Project located in Nunavut, Canada. The Study incorporates improvements to the mine model as a result of a re-design completed in 2004 by the Company and the study manager, AMEC AMEC African Methodist Episcopal Church AMEC Agent Mediated Electronic Commerce AMEC Arctic Military Environmental Cooperation AMEC Advanced Micro-Fabrication Equipment Inc AMEC Association of Media Evaluation Companies Americas Ltd. ("AMEC"). Construction scheduling and capital cost estimation has been prepared by Merit International Consultants Inc ("Merit"). Metallurgical met·al·lur·gy n. 1. The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals, and creating useful objects from metals. 2. and process test work was completed by SGS SGS Société Générale de Surveillance SGS Symantec Gateway Security (appliance) SGS School of Graduate Studies SGS Subgrid Scale SGS Singapore Government Securities SGS Shell Global Solutions Lakefield Research Ltd. Process design was completed by International Metallurgical and Environmental Inc. and AMEC. Supporting geotechnical engineering Geotechnical engineering is the branch of civil engineering concerned with the engineering behavior of earth materials. Geotechnical engineering includes investigating existing subsurface conditions and materials; assessing risks posed by site conditions; designing earthworks and , hydrogeological and geochemical studies were completed by Golder Associates Ltd. ("Golder"). The Study has been prepared in accordance with the Standards of Disclosure for Mineral Projects as defined by National Instrument 43-101 ("NI 43-101"). The most significant improvements are from increased annual production, changes to open pit scheduling and the addition of a conventional access road. The 2005 mine design has increased mill throughput by 36% (to 7,500 tonnes per day) while maintaining high gold recoveries. Resulting gold production is estimated at 316,000 ounces per year over an 8.3 year mine life. The high grade ores from the Portage Portage (1, 2 pôr`təj; 3 pôr`tĭj). 1 Town (1990 pop. 29,060), Porter co., NW Ind., a suburb of Gary, on Lake Michigan; inc. 1959. and Goose Island Goose Island may refer to: Places in Australia
Highlights of Feasibility Study: Assumptions include a long term gold price of US$400/oz. and an exchange rate of US$0.75 per Cdn$1.00.
Meadowbank Gold Project Feasibility
------------------------------------------------------
Open Pit Mineral Reserves 2,768,000 ounces
(Proven and Probable)
------------------------------------------------------
Metallurgical Recovery 93.5%
------------------------------------------------------
Mine Throughput 2.73 Mtpa
------------------------------------------------------
Mine Life 8.3 years
------------------------------------------------------
Average Annual Production Rate
Years 1 to 4 376,000 ounces
Life of Mine 316,000 ounces
------------------------------------------------------
Total Cash Cost per Oz.
Years 1 to 4 US$199
Life of Mine US$224
------------------------------------------------------
Internal Rate of Return
Pre-tax 14.3%
After-tax 10.7%
------------------------------------------------------
Payback Period 4.0 years
------------------------------------------------------
Pre-production Capital Cdn$300 million
US$225 million
------------------------------------------------------
"The Meadowbank Gold Project is a substantial platform for the Company to emerge as a mid-tier Canadian gold producer and will provide a significant long term economic benefit to Nunavut through job creation, new business opportunities, taxes and royalties," said Kerry Curtis President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "The exploration phase of Meadowbank has consistently returned additional resources, achieving a remarkable discovery cost of approximately US$12 per reserve ounce gold. Considerable opportunities exist to expand the 2.8 million ounce reserve, including the PDF (Portable Document Format) The de facto standard for document publishing from Adobe. On the Web, there are countless brochures, data sheets, white papers and technical manuals in the PDF format. deposit which is not included in the scope of the current Feasibility, and other targets within the 25 kilometre long greenstone belt Greenstone belts are zones of variably metamorphosed mafic to ultramafic volcanic sequences with associated sedimentary rocks that occur within Archaean and Proterozoic cratons between granite and gneiss bodies. . We will soon announce a 2005 exploration program designed to evaluate these opportunities with a goal of further improving the economics by extending the operational life of the mine. Moving forward through 2005, as we advance the permitting process and evaluate project finance options, we have extended the mandate of the Meadowbank Feasibility Review Committee to continue efforts to refine capital and operating costs to further improve the economics of the project." Changes to Project Design The Meadowbank Project is designed as a conventional open pit gold mine. Significant improvements to the Meadowbank production model were achieved in 2004 including optimization of a wide range of capital and operating items. Additional metallurgical test work completed in 2004 confirmed that a coarser grind would not significantly affect gold recoveries. This allowed for an increase in mill throughput with minor changes to the 2003 mine design and important savings in energy costs for milling. As a result, a 36% increase in process throughput resulting in a 28% increase in annual production has been achieved, without a significant reduction in gold recovery or increase in capital cost for the process plant. In 2004, the Company drilled 118 additional diamond drill holes resulting in the improvement in measured and indicated resources at the Goose Island and Vault deposits. The higher grade reserves from the Goose Island open pit have been moved forward (Year 2) in the mine schedule to improve the economics of the project. Conventional road access has reduced on-site infrastructure requirements, extended the access season, improved efficiencies in construction scheduling and reduced overall operating costs. Major open pit mining equipment will be leased for a five-year term with an option to purchase. The pre-production lease costs of the equipment are included in the capital cost estimate, and the ongoing costs of the lease are included in sustaining capital. A revised construction schedule and capital cost estimate has been prepared by Merit Consultants International Inc., a Canadian company specializing in construction management services. Capital costs, also prepared by AMEC, are within a 14% variance of the Merit estimate. 2003 Mine Model 2005 Mine Design ------------------------------------------------------------------- Mill Throughput 5,500 tpd 7,500 tpd ------------------------------------------------------------------- Access Winter road Conventional Road ------------------------------------------------------------------- Recovery 94.5% 93.5% ------------------------------------------------------------------- Mine Life 10 years 8.3 years ------------------------------------------------------------------- Annual Production 247,000 oz. 316,000 oz. Company Chairman, Walter Segsworth, who also chaired the Meadowbank Feasibility Review Committee said, "I am very pleased with today's result. The whole project team, which considered in detail more than 40 technical and cost aspects of the project, has dramatically improved Meadowbank at a time when cost pressures have been very challenging." Increased Resource Estimates for Feasibility Study The feasibility study assessed the resources of the Portage area, Vault and Goose Island gold deposits. The PDF deposit which remains at an early stage and requires further exploration was outside the scope of the Study. A total of 111,364 meters of diamond drilling Diamond Drilling is a highly specialized industry used for mineral exploration around the world. Most commonly using wireline and core bits with diamond encrusted matrix. To drill holes to max depths of twelve thousand feet, for the recovery of core used in verifying mineral (in 801 drill holes) define the resources of the three deposits. Information from six surface trenches (366 metres) at the Third Portage and Vault deposits are also included in the data set. In January 2004, AMEC completed a technical report (as defined in NI 43-101) on the Meadowbank resource estimates (see news release NR04 - 02) based on a database of 678 drill holes and trenches. An additional 118 drill holes were completed on the property between April and September, 2004, focusing on improved resource definition. Subsequent revisions to the Goose Island and Vault resource estimates were announced in November 2004 (see news release NR04 - 17). Revisions to the Portage area resource estimates were completed in January 2005 and reflect the addition of 15 infill in·fill n. 1. The use of vacant land and property within a built-up area for further construction or development, especially as part of a neighborhood preservation or limited growth program. 2. drill holes in the central portion of the deposit. The 2005 Portage area resource estimates have improved tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. and grade resulting in a 122,000 ounce increase in the Measured and Indicated category resource. The Meadowbank project mineral resource estimates are based on geologically constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. grade block models that were constructed by interpolating composited assay values with inverse (mathematics) inverse - Given a function, f : D -> C, a function g : C -> D is called a left inverse for f if for all d in D, g (f d) = d and a right inverse if, for all c in C, f (g c) = c and an inverse if both conditions hold. distance techniques. AMEC has checked the validity of the models with a number of methods and is satisfied that the resource models provide an acceptable estimate of tonnage and grade for the completion of the feasibility study. Grade capping was employed in all resource models. The updated resource estimates were prepared in conformance con·for·mance n. Conformity. Noun 1. conformance - correspondence in form or appearance conformity agreement, correspondence - compatibility of observations; "there was no agreement between theory and with the requirements set out in National Instrument 43-101 under the direction of Mr. Steven J. Blower, P.Geo., of AMEC, who is an independent qualified person as defined by NI 43-101.
Resource estimates for the Feasibility, including the updated Portage
resource, are as follows:
Meadowbank Project Resources - Q1/2005
---------------------------------------------------------------------
Deposit Category Tonnes Grade Ounces
(g/t)
---------------------------------------------------------------------
Portage Area (1.5 g/t cutoff) Measured 1,178,000 5.80 220,000
Indicated 11,120,000 4.60 1,645,000
----------------------------------------
Sub-Total 12,298,000 4.70 1,865,000
Inferred 528,000 4.30 73,000
---------------------------------------------------------------------
Goose Island (1.5 g/t cutoff) Measured - - -
Indicated 2,541,000 5.50 449,000
----------------------------------------
Sub-Total 2,541,000 5.50 449,000
Inferred 1,740,000 4.50 252,000
---------------------------------------------------------------------
Vault (2.0 g/t cutoff) Measured 39,000 3.70 5,000
Indicated 8,468,000 3.70 1,007,000
----------------------------------------
Sub-Total 8,507,000 3.70 1,012,000
Inferred 1,223,000 3.80 149,000
---------------------------------------------------------------------
All Deposits Measured 1,217,000 5.70 225,000
Indicated 22,129,000 4.40 3,101,000
----------------------------------------
Sub-Total 23,346,000 4.40 3,326,000
Inferred 3,398,000 4.30 547,000
Open Pit Reserves Conventional open pit mining methods will be used to exploit the resources of the project. Resources from the Third Portage, Bay Zone and North Portage deposits have been incorporated into a single, four-phase pit design. Resources from the Vault and Goose Island deposits have been incorporated into two separate single-phase open pit designs. Resources from the PDF deposit were outside of the scope of the feasibility. Open pit mine designs utilize extensive geotechnical engineering studies by Golder to develop pit wall slope parameters. Designs incorporate appropriate pit access ramps, wall slope angles, catchment catch·ment n. 1. A catching or collecting of water, especially rainwater. 2. a. A structure, such as a basin or reservoir, used for collecting or draining water. b. berms and minimum mining widths for selected equipment using a long term US$400 gold price at an exchange rate of US$0.75 per Cdn$1.00. Reserve determinations include allowance for dilution (15%) and mining losses (5%). The average strip ratio for open pit mining is 8.36:1 over the life of the mine. Cut-off cut-off Anesthesiology The point at which elongation of the carbon chain of the 1-alkanol family of anesthetics results in a precipitous drop in the anesthetic potential of these agents–eg, at > 12 carbons in length, there is little anesthetic activity, grades for the three pit areas have been based on the calculated breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations grade of 1.5 g/t for the Portage and Goose pits, and 1.75 g/t for the Vault pit. In addition a minimum mine-able grade thickness of 3 gram-metres for Portage and Goose and 3.5 gram-metres for Vault has been incorporated into the mine plan. The proven and probable open pit reserve estimate for the three pits on the project is as follows: Meadowbank Gold Project Open Pit Mining Reserves (Proven and Probable) ------------------------------------------------------------- Open Pit Ore (t) Au Grade (g/t) Contained Ounces ------------------------------------------------------------- Portage 11,180,000 4.27 1,534,000 Vault 8,469,000 3.18 866,000 Goose 2,247,000 5.09 368,000 ------------------------------------------------------------- Total 21,896,000 3.93 2,768,000 ------------------------------------------------------------- Sensitivities to gold price have been run utilizing Whittle(TM), an industry recognized pit optimization program, by varying the gold price by plus or minus 10% while holding all other parameters constant. On an in situ In place. When something is "in situ," it is in its original location. basis the contained metal varied by a maximum of two percent from the base case, demonstrating the relative insensitivity in·sen·si·tive adj. 1. Not physically sensitive; numb. 2. a. Lacking in sensitivity to the feelings or circumstances of others; unfeeling. b. of the three areas to changes in gold prices. The open pit mining reserves consist of the inventory of diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. and recovered Measured and Indicated blocks within the final pit designs. Inferred tonnage, within the final pit design, is not included within the reserve and has been added to waste. The Reserves have been prepared in accordance with NI 43-101. Mr. Mark Pearson
Mark "Pancho" Pearson, (born in October 28, 1939 in Ridgeway), was an English football forward. Pearson started his professional career with Manchester United F.C.. , P.Eng Principal Mining Engineer with AMEC Americas Limited is the independent Qualified Person responsible for preparation of stated reserves. Metallurgy metallurgy (mĕt`əlûr'jē), science and technology of metals and their alloys. Modern metallurgical research is concerned with the preparation of radioactive metals, with obtaining metals economically from low-grade ores, with The recovery of gold from ore within the Portage, Goose and Vault open pit designs is based on detailed metallurgical test work of the materials from the Meadowbank project over the course of 3 years. The sampling of the deposits was extensive and test work was completed using only drill core from ore zones which fall within the proposed mining plan. The sample materials were selected by qualified persons, and the materials best represent geological materials planned to be mined. The metallurgical test program was completed in the years 2003, 2004 and 2005, with gold recovery studies by SGS Lakefield Research Ltd. Gold recoveries are predicted as follows:
Summary of Expected Gold Recoveries
------------------------------------------------------------
Mined Zone Primary Grind Gold Recoveries
P80 - Microns %
------------------------------------------------------------
Portage Deposit 62 94.1
Goose Island Deposit 62 96.1
Vault Deposit 80 91.3
------------------------------------------------------------
Open Pit Mining Mining of the Meadowbank Project will be done by trucks and excavators, and has been projected over an eight plus year mine life. Ore will be extracted conventionally using drilling and blasting Before the advent of tunnel boring machines, drilling and blasting was the only economical way of excavating long tunnels through hard rock, where digging is not possible. Even today, the method is still used in the construction of particularly long tunnels, where a TBM is with truck haulage to a primary gyratory gy·ra·to·ry adj. Having a circular or spiral motion. crusher located adjacent to the mill. Waste rock will be hauled to one of two waste storage areas on the property or used for dyke construction or dumped into selective areas of the open pits that have previously been mined out. Mining will initially be concentrated in the Portage pit area. Waste material from the pre-stripping will be used as bulk construction materials for dykes, as well as for construction fill material around the site. During pre-production, ore grade Ore grade is a measure that describes the concentration of a valuable natural material (such as metals or minerals) in its surrounding ore. Ore grade is used to assess the economic feasibility of a mining operation: the cost of extracting a natural material from its ore is directly material will be stockpiled close to the primary crusher. During year one all of the ore material is scheduled to come from the Portage pit. Waste material will be used to complete the construction of the Goose Island dykes, with the remaining waste hauled to the primary dump north of the Second Portage Lake Portage Lake, inlet of Keweenaw Bay, c.20 mi (32 km) long and 2 mi (3.2 km) wide, N Mich., indenting the southeast shore of Keweenaw peninsula. An old portage route connected it with Lake Superior, and now a short ship canal, the Keweenaw Waterway, links the two lakes. . With the completion of the Goose Island dyke, the Goose Island pit will be brought into production and will augment the ore flow from the Portage pit. These two pits will operate concurrently for a period of four years, from years two through five. Waste stripping will commence in the Vault "In the Vault" is a short story by American horror fiction writer H.P. Lovecraft, written on September 18, 1925 and first published in the November 1925 issue of the amateur press journal Tryout. pit in year four, with the start of ore mining in year four as the Goose pit comes to a close. During the last two and half years of the project life, mining will be exclusively from the Vault pit. Major mining equipment has been based on a five-year lease program. Equipment leased for the project includes the following: blasthole drills, mass excavators, front end loader This article is about the Austrailian rock band Front End Loader. For the piece of construction equipment, see Loader (equipment). Front End Loader , haulage trucks and tracked dozers. All production period lease payments associated with the equipment have been included within the sustaining capital for the project. Minor equipment has been based on owner purchase. Material movement peaks in year two at a rate of 90,100 tpd when the Goose Island pit is started. The average material movement over the life of the project is 68,300 tpd. The rate of delivery of ore to the mill has been set at 7,500 tpd for the life of the mine. Process The process design is based on a conventional gold plant flowsheet consisting of primary gyratory crushing, grinding, gravity concentration, cyanide cyanide (sī`ənīd'), chemical compound containing the cyano group, -CN. Cyanides are salts or esters of hydrogen cyanide (hydrocyanic acid, HCN) formed by replacing the hydrogen with a metal (e.g., sodium or potassium) or a radical (e.g. leaching and gold recovery in a carbon-in-pulp (CIP (1) (Common Isochronous Packet) The packet format used in time-based (real time) FireWire transmission. See FireWire, IEC 61883 and mLAN. (2) (Common Industrial P ) circuit. The mill will be designed to operate 365 days per year with a design capacity of 2.7 million tonnes of ore per year (7,500 tpd). The overall gold recovery will be about 93.5%, based on expectations from metallurgical testwork, with about 40% typically recovered in the gravity circuit. The crushed ore is fed to a coarse ore stockpile stock·pile n. A supply stored for future use, usually carefully accrued and maintained. tr.v. stock·piled, stock·pil·ing, stock·piles To accumulate and maintain a supply of for future use. and then reclaimed to a semi-autogenous (SAG (1) A momentary drop in voltage from the power source. Contrast with spike. (2) (SAG) (SQL Access Group) See CLI. ) mill operating in closed circuit with a pebble crusher. The SAG mill operates together with a ball mill to reduce the ore to about 80% passing 60-90 microns, depending on the ore type and its hardness. The ball mill operates in closed circuit with cyclones. The grinding circuit incorporates a gravity process to recover free gold and the free gold concentrate will be leached in an intensive cyanide leach-direct electrowinning recovery process. The cyclone cyclone, atmospheric pressure distribution in which there is a low central pressure relative to the surrounding pressure. The resulting pressure gradient, combined with the Coriolis effect, causes air to circulate about the core of lowest pressure in a overflow is thickened thick·en tr. & intr.v. thick·ened, thick·en·ing, thick·ens 1. To make or become thick or thicker: Thicken the sauce with cornstarch. The crowd thickened near the doorway. 2. prior to pre-aeration with air and leaching in agitated ag·i·tate v. ag·i·tat·ed, ag·i·tat·ing, ag·i·tates v.tr. 1. To cause to move with violence or sudden force. 2. tanks. The leached slurry slurry, n a thin mixture of insoluble material floating in liquid. slurry solids in suspension. Used as a method of feeding pigs—slurry is pumped through fixed lines and delivered to troughs by hoses equipped with gasoline pump fittings. is directed to a six-tank CIP system for gold recovery. Gold in solution from the leaching circuit is recovered on carbon and subsequently stripped by high temperature Zadra elution elution /elu·tion/ (e-loo´shun) in chemistry, separation of material by washing; the process of pulverizing substances and mixing them with water in order to separate the heavier constituents, which settle out in solution, from the and recovered form the strip solution by electrowinning, followed by smelting smelting, in metallurgy, any process of melting or fusion, especially to extract a metal from its ore. Smelting processes vary in detail depending on the nature of the ore and the metal involved, but they are typified in the use of the blast furnace. and the production of a dore bar Major gold mines process ore at the site of the mine, creating a low-purity gold metal. This metal is poured into dore bars, which are then transported to refineries for further purification. . The CIP tailings Tailings (also known as tailings pile, tails, leach residue, or slickens[1]) are the materials left over[2] after the process of separating the valuable fraction from the worthless fraction of an ore. are treated for the destruction of cyanide using the standard sulphur-dioxide-air process. The detoxified tailings are pumped to the permanent tailings facility. The tailings storage is designed for zero discharge, with all process water being reclaimed for re-use in the mill to minimize the water requirements for the project. Infrastructure The Meadowbank project is located 70 kilometres north of the community of Baker Lake. The project site is at 134 metre elevation in low lying topography topography (təpŏg`rəfē), description or representation of the features and configuration of land surfaces. Topographic maps use symbols and coloring, with particular attention given to the shape and elevations of terrain. with numerous lakes. With a typical Arctic climate, the site experiences a wide range of average annual temperatures of between 23 degrees Celsius to -40 degrees Celsius with low annual precipitation precipitation, in chemistry precipitation, in chemistry, a process in which a solid is separated from a suspension, sol, or solution. In a suspension such as sand in water the solid spontaneously precipitates (settles out) on standing. . Plant site facilities will include a mill building with an attached maintenance facility, separate office and dry facilities, assay lab and heavy vehicle maintenance shop. A separate crusher structure will flank flank (flank) the side of the body between ribs and ilium. flank n. 1. The side of the body between the pelvis or hip and the last rib; the side. 2. the main process complex. Power will be supplied by an 18 MW diesel electric power generation plant with heat recovery and an on site fuel storage and distribution system. A pre-fabricated modular type accommodation complex for 200 persons will be supported with a sewage treatment Sewage treatment Unit processes used to separate, modify, remove, and destroy objectionable, hazardous, and pathogenic substances carried by wastewater in solution or suspension in order to render the water fit and safe for intended uses. , solid waste disposal and potable potable /pot·a·ble/ (po´tah-b'l) fit to drink. po·ta·ble adj. Fit to drink; drinkable. potable fit to drink. water plant. The mill-service-power complex will be connected to the accommodation complex with enclosed en·close also in·close tr.v. en·closed, en·clos·ing, en·clos·es 1. To surround on all sides; close in. 2. To fence in so as to prevent common use: enclosed the pasture. corridors. Peripheral infrastructure includes tailings and waste impoundment An action taken by the president in which he or she proposes not to spend all or part of a sum of money appropriated by Congress. The current rules and procedures for impoundment were created by the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C.A. areas, a seven kilometre haul road to the Vault open pit, and a 1,100 metre long gravel airstrip. Baker Lake facilities will include a barge landing site located several kilometres east of the community. A storage compound consisting of open storage area, a cold storage building and a fuel storage and distribution complex with 38M L capacity will be constructed next to the barge landing facility. Baker Lake storage facilities will be linked to the mine site with a 102 kilometre long conventional access road. Transportation Ocean transportation of fuel, equipment, bulk materials and supplies to site will be from Montreal (or Hudson Bay Hudson Bay, inland sea of North America, c.475,000 sq mi (1,230,000 sq km), c.850 mi (1,370 km) long and c.650 mi (1,050 km) wide, E central Canada. Hudson Bay and James Bay (its southern extension) and all their islands border Nunavut Territory, Manitoba, Ontario, port facilities) via barges and ships into Baker Lake during the 2.5 month ice-free window that starts in mid-July of each year. Baker Lake storage facilities are linked to site by a 102 kilometre long access road. Fuel and supplies will be transported to the site by conventional tractor trailer units. Transportation for personnel and air cargo air cargo: see aviation. will be provided on regular scheduled flights scheduled flight schedule n → vol régulier scheduled flight schedule n → Linienflug m on aircraft based out of northern Manitoba. Staff living in the surrounding communities will be transported to site by alternate arrangement. Environment and Permitting The Company has prepared and submitted a Draft Environmental Impact Study ("DEIS") to the Nunavut Impact Review Board ("NIRB NIRB Near Infrared Background NIRB NIMA-IMINT Review Board "). The report identifies the potential impacts the Meadowbank Project will have on the local environment, socio-economic impacts, and the management and mitigation measures required to minimize the impacts of the project while maximizing the benefits. The NIRB is presently reviewing the DEIS and the Company anticipates it could move into the Final EIS (1) (Executive Information System) An information system that consolidates and summarizes ongoing transactions within the organization. It provides top management with all the information it requires at all times from internal and external sources. stage in the fall of 2005. Final approvals and licenses are anticipated in early 2006. Engineering and Construction Schedule The engineering and construction schedule for the project anticipates that all necessary NIRB approvals and licenses are obtained in early 2006 allowing shipping of equipment and supplies in the 2.5 month 2006 shipping season (mid-July to late September). Construction of the access road from Baker Lake to the Meadowbank site would commence in the fall of 2006. Upon completion of the access road a mine construction period of 18 months is required with production commencing in mid-2008. Capital Costs The capital cost to carry out the design, supply, construction and commissioning of the project is Cdn$300 million (US$225 million), estimated in 4th Quarter, 2004 Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents with no allowance for escalation es·ca·late v. es·ca·lat·ed, es·ca·lat·ing, es·ca·lates v.tr. To increase, enlarge, or intensify: escalated the hostilities in the Persian Gulf. v.intr. . Lease payments for mine equipment during the pre-production period have been included in the capital cost estimate. Lease payments during mine operations have been included within the sustaining capital for the project. Capital Cost Summary ($ x 1,000) ----------------------------------------------------- Description Cdn$ US$ ----------------------------------------------------- Mining 28,287 21,215 ----------------------------------------------------- Process 73,400 55,050 ----------------------------------------------------- Tailings 3,437 2,578 ----------------------------------------------------- Ancillaries 26,266 19,700 ----------------------------------------------------- Mine site Infrastructure 48,320 36,240 ----------------------------------------------------- Baker Lake Facilities 9,174 6,881 ----------------------------------------------------- Owners Costs 8,234 6,175 ----------------------------------------------------- Indirects 74,915 56,186 ----------------------------------------------------- Contingency 28,062 21,046 ----------------------------------------------------- Total Capital Cost 300,095 225,071 The indirects in the above table include Cdn$25 million (US$18.8 million) for third-party engineering, procurement and construction  The introduction to this article is vague. To comply with Wikipedia's guidelines, it should be improved. management (EPCM EPCM Engineering, Procurement, Construction ManagementEPCM Essential Procedures for Clinical Microbiology EPCM Enhanced Planning Control Message EPCM Enterprise Portal Content Management EPCM European Project & Change Management (The Netherlands) ), integrated with owner participation. Sustaining capital following plant start-up is Cdn$56 million (US$42 million) including leasing costs for the mine fleet and allowance for additional open pit equipment. In addition, reclamation Reclamation A claim for the right to return or the right to demand the return of a security that has been previously accepted as a result of bad delivery or other irregularities in the delivery and settlement process. costs have been estimated at Cdn$18 million (US$13.5 million). Operating Costs All operating and maintenance costs were summarized into the major categories of Mine, Process Plant Operations and General and Administrative (G&A) costs. These costs are expressed in 4th Quarter, 2004 Canadian dollars with no allowance for escalation.
Life of Mine Property Operating Costs ($ 000's)
------------------------------------------------------
Cost Area Cdn$/t milled US$/t milled
------------------------------------------------------
Open Pit Mining $11.93 $8.95
Process Plant $12.24 $9.18
G&A $11.18 $8.39
Total $35.36 $26.52
------------------------------------------------------
Life-of-mine cash costs based on Gold Institute Guidelines, are shown
as follows:
-----------------------------------------------------------
US$/oz
-----------------------------------------------------------
Direct Mining Costs $223
Third-party Refining and Transportation Costs $ 1
Cash Operating Costs $224
Royalties(i) $ 0
Total Cash Cost $224
-----------------------------------------------------------
(i)Note: excludes royalties payable to the Crown and Nunavut
Tunngavik Inc. which are based on net income and reflected in income
and mining taxes.
Financial Evaluation AMEC completed a financial analysis of the Meadowbank Project using a discounted cash flow model incorporating applicable Nunavut and Federal taxes and royalties. The after-tax results include payment of all royalties. The base case for analysis was built assuming a US$400 gold price and an exchange rate of US$0.75 per Cdn$1.00 and 100% equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. . Project construction capital costs including pre-production costs, ongoing capital costs and mine closure costs have been included in the Project cash flow projections A Cash Flow Projection is an attempt to forecast the cash flows that will be generated by an asset, often a company, over a specified time frame. Methodology Projections can be made with varying levels of detail, but any cash flow projection for a business entails . Operating costs are expressed as 4th Quarter 2004 Canadian dollars with no allowance for escalation.
Meadowbank Project Financial Analysis Summary
------------------------------------------------------------
Project Data Estimated Value
------------------------------------------------------------
Life of Mine 8.3 years
------------------------------------------------------------
Total Gold Produced 2.6 M oz.
------------------------------------------------------------
Total Ore Mined 21.9 M t
------------------------------------------------------------
Total Material Mined 205 M t
------------------------------------------------------------
Open Pit Strip Ratio 8.36:1
------------------------------------------------------------
Average Gold Grade 3.93 g/t
------------------------------------------------------------
Base Case Gold Price US$400/oz.
------------------------------------------------------------
Total Cash Cost US$224/oz.
------------------------------------------------------------
Construction Capital Cost US$225 M
------------------------------------------------------------
Sustaining Capital Cost US$42 M
------------------------------------------------------------
Pre-Tax Cash Flow (undiscounted) US$174 M
------------------------------------------------------------
After-Tax Net Present Value @ 0% US$115 M
------------------------------------------------------------
After-Tax Net Present Value @ 5% US$46 M
------------------------------------------------------------
Pre-Tax Internal Rate of Return 14.3%
------------------------------------------------------------
After-Tax Internal Rate of Return 10.7%
------------------------------------------------------------
Payback Period (from start up) 4.0 years
Note: The economic model includes the tax benefits associated with
approximately Cdn$53 million of accumulated exploration, development
and capital cost pools, which are projected to be available to the
Company at the end of 2005 as deductions against future taxable
income.
Sensitivity Analysis Summary
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Variation After-tax After-tax After-tax
(US$) IRR % NPV @ 0% NPV @ 5%
US$ millions US$ millions
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Gold Price (US$)
+10% $440 16.0% $176.8 $90.6
Base Case $400 10.7% $115.3 $46.1
-10% $360 4.9% $52.6 ($0.5)
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Exchange Rate
(US$ per Cdn$1.00)
+10% $0.83 5.5% $63.8 $4.0
Base Case $0.75 10.7% $115.3 $46.1
-10% $0.68 16.6% $165.2 $85.9
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Cash Operating Cost
(US$/oz.)
+10% $247 7.6% $79.7 $20.5
Base Case $224 10.7% $115.3 $46.1
-10% $202 13.7% $150.2 $71.0
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Pre-production Capital
(US$)
+10% $248 8.6% $101.9 $32.1
Base Case $225 10.7% $115.3 $46.1
-10% $203 13.2% $128.3 $59.7
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Grade (g/t)
+10% 4.3 16.0% $176.7 $90.5
Base Case 3.9 10.7% $115.3 $46.1
-10% 3.5 4.9% $52.7 ($0.5)
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Cumberland is a mineral exploration and development company which holds interests in two undeveloped gold properties in Canada: Meadowbank (100%) and Meliadine West (22% carried to production). Cumberland is well financed and is advancing the Meadowbank property to production. CUMBERLAND RESOURCES LTD. "Kerry M. Curtis, B.Sc., Geo." President and CEO Forward Looking Statements - This News Release contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ", including, but not limited to, statements regarding our expectations as to the market price of gold, strategic plans, future commercial production, production targets and timetables, mine operating costs, capital expenditures, work programs, exploration budgets and mineral reserve and resource estimates. Forward-looking statements express, as at the date of this report, our plans, estimates, forecasts, projections, expectations or beliefs as to future events or results. We caution that forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals Precious Metals Valuable metals such as gold, iridium, palladium, platinum, and silver. Notes: Investing in precious metals can be done either by purchasing the physical asset, or by purchasing futures contracts for the particular metal. , mining industry risks and hazards, environmental risks and hazards, uncertainty as to calculation of mineral reserves and resources, requirement of additional financing, risks of delays in construction and other risks more fully described in our AIF AIF Annual Information Form AIF Apoptosis-Inducing Factor AIF Agence Intergouvernementale de la Francophonie (French: Intergovernmental Agency for Francophony) AIF Australian Imperial Force filed with the Securities Commissions of the Provinces of British Columbia, Ontario, Quebec and Nova Scotia Nova Scotia (nō`və skō`shə) [Lat.,=new Scotland], province (2001 pop. 908,007), 21,425 sq mi (55,491 sq km), E Canada. Geography in our 40F filed with the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities and Exchange Commission (the "SEC") and with the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. . Cautionary Note to U.S. Investors - The SEC permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this news release such as "mineral resources Noun 1. mineral resources - natural resources in the form of minerals natural resource, natural resources - resources (actual and potential) supplied by nature " and "inferred resources" that the SEC guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. strictly prohibit us from including in our Form 40-F available from us at Suite 950 - 505 Burrard Street Burrard Street is a major thoroughfare in Vancouver, British Columbia, Canada. It is the central street of Downtown Vancouver and the Financial District. The street is named for Burrard Inlet, located at its northern terminus, which in turn is named for Sir Harry Burrard. , Vancouver, B.C. V7X 1M4. You can also obtain this form from the SEC by calling 1-800-SEC-0330. Cautionary Note to U.S. Investors concerning estimates of Indicated Resources - This news release uses the term "indicated" resources. We advise US Investors that while that term is recognized and required by Canadian regulations, the SEC does not recognize it. U.S. investors are cautioned not to assume that any part or all of mineral deposits in this category will ever be converted into mineral reserves. Cautionary Note to U.S. Investors concerning estimates of Inferred Resources - This news release uses the term "inferred" resources. We advise U.S. investors that while this term is recognized and required by Canadian regulations, the SEC does not recognize it. "Inferred Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. U.S. investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. Cumberland Resources Ltd. (TSX:CLG) (AMEX:CLG) |
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