PolarX Ltd. Aug. 27 published the results from an updated scoping study for its Alaska Range project that incorporates a much larger resource for the Caribou Dome copper deposit.

A 2022 Alaska Range scoping study investigated the potential of building a central mill that would process ore from Caribou Dome and Zackly, the two most advanced deposits on the roughly 22-mile- (35 kilometers) long Alaska Range property.

This study envisioned an open-pit mine at the Caribou Dome carbonate-hosted copper deposit and underground operation at Zackly, a skarn deposit about 15 miles (24 kilometers) to the northeast that hosts 4 million metric tons of indicated and inferred resources averaging 1.1% (45,000 metric tons) copper, 1.6 grams per metric ton (213,000 oz) gold, and 12.6 g/t (1.6 million oz) silver.

In June, PolarX released the results of an updated calculation that expands the Caribou Dome deposit to 7.2 million metric tons of measured, indicated, and inferred resources averaging 3.1% (224,375 metric tons) copper and 6.5 g/t (1.5 million oz) silver.

This is 2.6 times more copper than was included in the 2017 resource estimate used for the 2022 Alaska Range scoping study.

With the expanded resource, the new scoping study envisions mining and processing to begin with a high-grade open pit at Caribou Dome, followed by trucking ore from underground mining at Zackly to the proposed 750,000-metric-ton-per-year mill and processing plant at Caribou Dome. The plant would run at full capacity while processing Caribou Dome ore and at 600,000 metric tons per year while processing Zackly ore.

The mining sequence and mill site is opposite the order of mining in the previous study.

Based on the increased resources, the proposed mine at Alaska Range would produce 138,446 metric tons of copper, 102,577 oz of gold, and 1.46 million oz of silver over 9.5 years of mining.

At an estimated C1 cash cost of US$1.93 per pound of copper produced – after byproduct credits for the gold and silver also recovered – this operation generates a pre-tax net present value (7% discount) of US$201 million, internal rate of return of 38.4%, and a capital payback period of 2.75 years.

The pre-production capital cost of developing the Zackly and Caribou Dome mines outlined in the updated scoping study is US$145 million.

PolarX said that even modest increases in copper recovery and concentrate grades from material mined at Caribou Dome could yield the most substantial increases to the proposed mining operation's net present value. As such, the Australia-based mineral exploration and development company is extending test work along these lines.

This includes the collection of samples from Caribou Dome for additional metallurgical testing to be done later this year.

PolarX says there is also room to improve metals recoveries from Zackly ore, and it plans further metallurgical testing, as well as an examination and trial of alternative recovery options for both Caribou Dome and Zackly this year.

PolarX Ltd.

In addition to metallurgical work, resource expansion could be achieved at both deposits with additional drilling. The company says it is considering further targeted resource expansion drilling at Caribou Dome and Zackly but did not indicate when this work will begin.

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Shane Lasley, Publisher

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