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Eskay Creek Mine - Minerals North

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<strong>Eskay</strong> <strong>Creek</strong> <strong>Mine</strong>


OUTLINE<br />

ESKAY CREEK MINE<br />

- Snapshot of <strong>Eskay</strong><br />

<strong>Creek</strong>.<br />

- <strong>Eskay</strong> People<br />

- Major Issues &<br />

Exploration.<br />

– April, 2004


<strong>Eskay</strong> <strong>Creek</strong><br />

<strong>Mine</strong><br />

*


History<br />

To December 26, 2002, the<br />

<strong>Mine</strong> has produced 2.86<br />

million ounces of gold and<br />

129.6 million ounces of<br />

silver.<br />

2002 production averaged<br />

637t/day and is budgeted<br />

at 700t/day in 2003.<br />

Tom MacKay’s Original Cabin.<br />

It is still Intact and was left untouched on<br />

the Rehabilitated Site of the Original<br />

Exploration and Development Camp.


<strong>Mine</strong>site photo showing the<br />

general layout and location of the<br />

ESKAY OREBODIES<br />

orebodies on the hillside.<br />

N


<strong>Eskay</strong> <strong>Creek</strong> <strong>Mine</strong><br />

Ore Reserves at Dec 27, 2002<br />

Production - January 1995 to Dec 27 2003:<br />

1.53 million tonnes grading: 58.1 g/t Au<br />

2635 g/t Ag<br />

Proven and Probable Reserves at Dec 27, 2003:<br />

0.84 million tonnes grading: 34.8 g/t Au<br />

1604 g/t Ag<br />

Indicated Geological Resource:<br />

0.63 million tonnes grading: 12.9 g/t Au<br />

359 g/t Ag


ESKAY CREEK MINE<br />

2004 Budget<br />

2004 Budget Statistics:<br />

DSO tonnes 135,000, 370 tpd.<br />

Mill tonnes, 110,000, 300 tpd.<br />

Grade: 42.1 gpt Au, 2060 gpt Ag.<br />

Payable Au ounces: 310,000.<br />

Payable Ag Ounces: 14,987,000.


2004 Budget Statistics:<br />

ESKAY CREEK MINE<br />

2004 Budget<br />

• Capital Expenditures: $8.4 MM.<br />

• Total Cash Costs: $654/tonne<br />

CDN.<br />

• Total Cash Costs: $110 US/ounce.<br />

• Cash Flow: $66.2 MMUSD.


2004 BUDGET SITE COSTS<br />

Services<br />

9%<br />

Mill<br />

4%<br />

G & A<br />

4%<br />

Other<br />

1%<br />

Roads<br />

1%<br />

Total Smelter<br />

43%<br />

Exploration<br />

DD<br />

5%<br />

Total Mining<br />

21%<br />

Total<br />

Transporation<br />

12%


<strong>Eskay</strong> <strong>Creek</strong> Ore Bodies: 2004 <strong>Mine</strong> Plan<br />

1000m<br />

900m<br />

800m<br />

700m<br />

600m<br />

10000<br />

10200<br />

21C-south pod<br />

10400<br />

Pumphouse<br />

10600<br />

10800<br />

12E<br />

21C-north<br />

21B<br />

11000<br />

109<br />

11200<br />

HW<br />

11400<br />

N<br />

1000m<br />

800m<br />

600m<br />

500m<br />

NEX<br />

400m<br />

300m<br />

160<br />

Resource models<br />

NEX&HW Deep<br />

400m<br />

160.0<br />

Tonnes (000s)<br />

120<br />

80<br />

40<br />

120.0<br />

80.0<br />

40.0<br />

AuE (gpt)<br />

0<br />

109 21B 21C HW NEX PMP<br />

0.0<br />

Tonnes<br />

AuE


- Snapshot of <strong>Eskay</strong><br />

<strong>Creek</strong>.<br />

- <strong>Eskay</strong> People<br />

- Major Issues &<br />

Exploration.<br />

ESKAY CREEK MINE<br />

– April, 2004


ESKAY CREEK MINE<br />

General Manpower<br />

Statistics<br />

Barrick – 155<br />

Contractors – 194<br />

total – 349<br />

Approximately a third<br />

are from the Tahltan<br />

First Nation


Involvement of Tahltan<br />

First Nations<br />

Percentage of Employment 34%<br />

Joint Ventures (Arrow-Tahltan Trucking, Spatsizi Remote Site<br />

Services, Procon-proposed also Tahltan Nation Development Corporation)<br />

Income and donations (to date -LOM):<br />

C$93M<br />

Apprenticeships (Mechanics, electricians, chefs, warehouse)<br />

Quarterly Meeting Updates – Opportunites for<br />

Increased Involvement and Increased Capacity


ESKAY CREEK MINE<br />

Joint Ventures<br />

1. Arrow – TNDC<br />

Transportation<br />

Systems<br />

2. Spatsizi Remote<br />

Services


ESKAY CREEK MINE<br />

Road maintenance and<br />

material handling<br />

contract with Tahltan<br />

Nation Development<br />

Corporation (TNDC)


- Snapshot of <strong>Eskay</strong><br />

<strong>Creek</strong>.<br />

- <strong>Eskay</strong> People<br />

- Major Issues &<br />

Exploration.<br />

ESKAY CREEK MINE<br />

– April, 2004


MILL & DSO ORE (350tpd)<br />

300,000<br />

250,000<br />

Mill Tonnes<br />

DSO Tonnes<br />

200,000<br />

Tonnes<br />

150,000<br />

100,000<br />

50,000<br />

0<br />

2003 2004 2005 2006 2007 2008<br />

Mill Tonnes 120,450 120,780 122,230 127,750 127,750 67,586<br />

DSO Tonnes 135,050 135,050 109,506


Major Issues<br />

- Exploration: Three main areas of focus.<br />

- <strong>Mine</strong> & Mill throughput optimization.<br />

- Effective and respectful transition to a mill only<br />

operation at reduced production rates.


2004 DIAMOND DRILLING<br />

Definition<br />

Exploration<br />

Underground (m) 16,500 16,500<br />

Surface (m) 3,000 2,000<br />

Development req'd (m) - 300<br />

Total $ ($US millions) $ 0.85 $ 1.42


RESERVES & RESOURCES<br />

21A & 21C<br />

Resource<br />

Pumphouse<br />

Zone<br />

21B Zone<br />

21E<br />

Zone<br />

109<br />

Zone<br />

N<br />

21C South<br />

70 Stope<br />

21C South<br />

76 Stope<br />

21C ‘Mid’<br />

Resource<br />

21C <strong>North</strong><br />

Water Tower<br />

Resource<br />

NEX<br />

Zone<br />

Deep Adrian<br />

Resource<br />

HW<br />

Zone


N<br />

5 Ramp Extension<br />

“Deep Adrian”<br />

and NEX targets<br />

Planned extension<br />

for 2004<br />

“44 Zone”<br />

NEX


Longitudinal Section Looking West Across The Deposit<br />

1000m<br />

Contact<br />

Mudstone<br />

Basalt<br />

sequence<br />

21B Zone<br />

HW Zones<br />

Deep Adrian<br />

N<br />

800m<br />

600m<br />

Bowser<br />

Sediments<br />

400m<br />

109 Zone<br />

NEX Zone<br />

200m<br />

msl<br />

0m<br />

500m


22 Zone – Location Map<br />

><br />

53<br />

><br />

58<br />

6<br />

8<br />

*<br />

><br />

54<br />

><br />

57<br />

21 Zone<br />

Deposits<br />

><br />

56<br />

><br />

55<br />

22 Zone<br />

0<br />

500<br />

metres<br />

1,000


22 Zone Access – 72 Ramp


Major Issues<br />

- Exploration: Three main areas of focus.<br />

- <strong>Mine</strong> & Mill throughput optimization.<br />

- Effective and respectful transition to a mill only<br />

operation at reduced production rates.


Major Issues<br />

- Exploration: Three main areas of focus.<br />

- <strong>Mine</strong> & Mill throughput optimization.<br />

- Effective and respectful transition to a mill only<br />

operation at reduced production rates.


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