Mining Explorers 2015: Selwyn Chihong Mining Ltd.
Last updated 11/1/2015 at Noon
Chief Executive Officer: Richard (Shilin) Li
VP, Exploration: John O'Donnell
Selwyn Chihong Mining Ltd., a Canadian subsidiary of Yunnan Chihong Zinc & Germanium Co. Ltd., is targeting 2021 for the start of production at the Selwyn zinc-lead project in far eastern Yukon Territory.
Yunnan Chihong Zinc & Germanium, which formed a joint venture with Selwyn Resources Ltd. on the project in 2009, subsequently invested C$100 million to earn a 50 percent interest in Selwyn and then paid C$50 million for the remaining half of the project.
According to a 2012 calculation, the Selwyn project has an indicated resource of 185.6 million metric tons averaging 5.2 percent (21.26 billion pounds) zinc and 1.79 percent (7.3 billion lbs.) lead, and an inferred resource of 237.86 million metric tons averaging 4.47 percent (23.45 billion lbs.) zinc and 1.38 percent (7.22 billion lbs.) lead.
Though earlier studies considered an underground mine, Selwyn Chihong believes a larger scale open-pit mine with a 35,000-metric-ton-per-day mill is a better fit for developing one of the world's largest zinc deposits.
The company expects this operation to produce 2,500 metric tons of zinc concentrate and 600 metric tons of lead concentrate per day.
These concentrates will be trucked to an ore terminal in Skagway, Alaska to be shipped overseas.
A prefeasibility study detailing this plan is scheduled to be completed this year and a bankable feasibility study is expected in 2016.
With the goal of putting a mine into production in 2020, Selwyn Chihong invested C$56 million to advance the enormous zinc project in 2014 and has budgeted another C$40 million this year.
A 10,000-meter drill program being carried out in 2015 will provide additional geological and geotechnical data needed for the studies.
Capital expenditures are currently estimated at roughly US$2 billion and operating costs are anticipated to run about US$950 million per year - providing some 1,500 construction jobs and employing about 750 people during operations.
2701-1055 W. Georgia Street, Vancouver, B.C. Canada, V6E 0B6
Tel: 604-620-6188 Fax: 604-681-8344