OFR-49-95 Economic Feasibility Of Mining In The Colville Mining District, Alaska

Mining and processing cost analyses were conducted by the U.S. Bureau of Mines on stratiform zinc-lead-silver, coal, and stratiform barite deposit types that are found in the Colville Mining District. Reserves and gross revenues which would allow these deposits to be minable were modeled. A 15% Discounted cash-flow rate-of-return economic threshold was selected as the minimum acceptable return on investment for the three deposit types. The economic modeling indicated combinations of grades and tonnages for stratiform sulfide deposits that could be economically viable for orebodies ranging in size from 25 to 130 million metric tons. The gross revenues for a surface mine range from $200/mt for a 5,000 mtpd operation using the proposed South corridor to $140/mt for a 17,000 mtpd mine using the proposed North corridor. The economic modeling indicated underground coal mining was subeconomic for deposits ranging in size from 42 to 250 million metric tons. The required gross revenues ranged from $300/mt for a 2,200 mtpd mine to $21 D/mt for a 13,000 mtpd mine. The economic modeling indicated supplying projected in-state barite demand was subeconomic for the three seasonal surface mines modeled. The required gross revenues ranged from $600/mt for a 90,000 mtpy mine to $840/mt for a 6,000 mtpy mine.