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By A.J. Roan
Mining News 

Two BC explorers join Kitsault mill complex

Blackwolf, New Moly, Dolly Varden welcome two new parties North of 60 Mining News – March 24, 2023

 

Last updated 3/23/2023 at 2:18pm

Map showing location of each company’s primary mine property.

Blackwolf's Niblack, New Moly's Kitsault, Dolly Varden's Kitsault Valley, Goliath's Golddigger, and Coast Copper's Empire Mine; this growing collective is likely setting a standard to circumvent the painstaking permitting processes needed to open a modern mine.

Blackwolf Copper and Gold Ltd. March 21 announced it has updated its earlier agreement with Dolly Varden Silver Corp. and New Moly LLC to study the viability of building a mill complex on New Moly's Kitsault project in Northern British Columbia with the addition of two new companies interested in partaking in the study – Goliath Resources Ltd. and Coast Copper Corp.

At the beginning of February, Blackwolf, Dolly Varden and New Moly reported strong interest in consolidating ore processing for the companies at a single centralized location.

"We are optimistic about the potential synergies of working with the companies in a scenario to reduce respective capital costs as well as reduce permitting timelines and risks by using a permitted site located on tidewater," Blackwolf Copper and Gold President and CEO Robert McLeod said at the time.

Located approximately 65 kilometers (40 miles) southeast of Stewart, BC, Kitsault is the site of a historical mining operation that produced roughly 30 million pounds of molybdenum during intermittent mining from 1968 to 1982.

This Northern BC project, now owned by New Moly subsidiary Avanti Kitsault Mine Ltd., continues to host one of the largest and highest-grade primary molybdenum deposits in the world. Because this property is home to legacy mining, a mill could be built there with relatively fewer disturbances to the environment.

You can read about the initial agreement at Alaska, BC miners eye centralized mill in the February 3, 2023 edition of North of 60 Mining News.

New Moly has already been issued key federal and provincial permits for a proposed operation that would process 1.62 million metric tons of ore annually for 15 years.

Avanti has also already garnered cooperation, benefits, and environmental agreements with the Nisga'a First Nation.

McLeod, a lifelong resident of Stewart that lies within traditional Nisga'a territory, has already spoken with the First Nation about the idea of establishing a centralized mill at Kitsault.

"Nisga'a Lisims Government has had initial discussions with the company on the concept of a hub and spoke mill at the site of the Kitsault project," said Charles Morven, secretary and treasurer for Nisga'a Lisims Government. "We look forward to further consultation on this and other natural resource opportunities within the Nass Area which is subject to the Nisga'a Final Agreement where we have constitutionally protected title and rights."

With access to clean hydropower, road and tidewater access, as well as the rising molybdenum market, New Moly is strongly considering coordinating funding requirements to restart mining at this historical site.

Thus, the companies engaged Fuse Advisors Inc. to complete an initial assessment of the technical viability of the Kitsault Polymetallic Mill concept. By reviewing the respective metallurgical test work completed at the various deposits, Fuse Advisors will assess the potential for blending or batching mineralized material, potential process flow sheets, potential throughputs from the various deposits, and associated mill sizing and timelines.

New interested parties

Much like Blackwolf, with its limited land space at its Niblack copper-zinc-gold-silver project in Southeast Alaska, Goliath and Coast Copper's properties present future challenges and permitting that a centralized mill at Kitsault would ideally solve.

With an option to acquire 100% of its Golddigger gold-silver property that spans an area of 52,756 hectares (130,363 acres), this project lies within the world-class geological setting of the Eskay Rift within the Golden Triangle and within 2,000 meters of the Red Line that is host to multiple world-class deposits.

Located on tidewater roughly 30 kilometers (19 miles) southeast of Stewart – to simply barge its ore to the mill, at first glance, appears far more economical a solution.

Coast Copper's exploration focus lies upon its optioned Empire Mine property. Located on northern Vancouver Island, this 15,725-hectare (38,857 acres) land package once held three historical open pit mines and two past-producing underground mines that yielded various minerals such as gold, silver, iron, and copper.

While furthest south from the other interested parties, a similar trip from the established Port Hardy reveals a roughly 543-kilometer (338 miles) distance as the crow flies. With other choices of either Port McNeill or Port Alice, although the Empire Mine lies further inland, Coast Copper has options if it wishes to participate in the mill project.

"We look forward to working with Coast Copper and Goliath Resources to study the potential synergies of including reduced respective capital and processing costs as well as reduce permitting timelines and risks by using a permitted site located on tidewater," said McLeod. "With the Niblack copper-gold-zinc-silver deposit located on tidewater and marine bulk transport being reasonably cost effective, we believe that the Kitsault site could be a potential good fit for Blackwolf. The syndicate of Companies continues discussions with other companies that have projects near tidewater in Alaska and B.C."

As it stands, the companies have agreed to jointly share the costs of this study.

Large swath of land already cleared for a potential Kitsault Polymetallic Mill.

Blackwolf Copper and Gold Ltd.

The potential site of the Kitsault Polymetallic Mill. With some additional cleanup, the land appears relatively close to being ready for construction to begin. After preliminary assessment and study is completed, of course.

"We look forward to working with this collaboration of companies to study the potential synergies that include reduced respective capital, processing costs as well as reduce permitting timelines and risks by using a permitted site located on tidewater," said Goliath Resources CEO Roger Rosmus. "With the Surebet's gold-silver-copper-lead-zinc discovery that has two barge access points located on tidewater and marine bulk transport being reasonably cost effective, we believe that the Kitsault site could potentially be an excellent fit for Goliath to unlock additional shareholder value."

"We are very pleased to have been included in the study of the Kitsault Polymetallic Mill," said Coast Copper CEO Adam Travis. "This could greatly increase synergies between the companies, reduce respective capital costs as well as reduce permitting timelines and risks by using a permitted site location. Coast Copper is looking at this assessment as a viable option if and when our optioned Empire Mine property ever gets to the point of production."

 

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