The price tag for Silver Standard Resources’ Snowfield-Brucejack project near Stewart, B.C. has been announced and it is a humdinger.
In a preliminary economic assessment report released Monday, the Vancouver-based company (TSX:SSO) said the cost to build the project is estimated at US$3.5 billion.
Silver Standard has 15 projects in seven countries, including one silver mine in Argentina, but Snowfield and Brucejack are the company’s only prospects in B.C.
The project is actually comprised of two different deposits adjacent to one another, and the assessment, prepared by Wardrop Engineering Inc., envisions an open pit operation with a 27-year mine life.
The preliminary assessment includes inferred mineral resources considered too speculative to enable them to be categorized as reserves.
Snowfield-Brucejack is estimated to contain 27.8 million ounces of gold, 157.2 million ounces of silver, 2.14 billion pounds of copper and 198.1 million pounds of molybdenum, which could make it one of the largest mines in the province if built.
Over the life of the mine, the project is expected to produce 700,000 ounces of gold annually.
The estimates in the assessment are based on metal prices of US$878 per ounce of gold, US$14.50 per ounce of silver, US$17 per pound of molybdenum and US$2.95 per pound of copper.
Company president and CEO John Smith said, “This preliminary assessment demonstrates the value of both Snowfield and Brucejack and the potential for a combined development … with our significant portfolio of in-ground resources we are in a unique position to generate project options to deliver both growth and cash flow.”
Silver Standard’s share price increased $0.24 to $19.44 after the news was announced.