Eskay Creek Mine - Minerals North · ESKAY CREEK MINE – April, 2004 OUTLINE-Snapshot of Eskay Creek.-Eskay People-Major Issues & Exploration. *

Eskay Creek MineEskay Creek Mine

ESKAY CREEK MINEESKAY CREEK MINE–– April, 2004 April, 2004

OUTLINE

- Snapshot of Eskay

Creek.

- Eskay People

- Major Issues &

Exploration.

*Eskay Creek

Mine

HistoryHistory

� To December 26, 2002, the

Mine has produced 2.86

million ounces of gold and

129.6 million ounces of

silver.

� 2002 production averaged

637t/day and is budgeted

at 700t/day in 2003.

It is still Intact and was left untouched on

the Rehabilitated Site of the Original

Exploration and Development Camp.

Tom MacKay’s Original Cabin.

MinesiteMinesite photo showing the photo showing the

general layout and location of thegeneral layout and location of the

orebodiesorebodies on the hillside. on the hillside.E

SK

AY

OR

EB

OD

IES

N

Production - January 1995 to Dec 27 2003:

1.53 million tonnes grading: 58.1 g/t Au

Proven and Probable Reserves at Dec 27, 2003:

0.84 million tonnes grading: 34.8 g/t Au

2635 g/t Ag

1604 g/t Ag

Indicated Geological Resource: 0.63 million tonnes grading: 12.9 g/t Au

359 g/t Ag

Eskay Creek MineEskay Creek Mine

Ore Reserves at Dec 27, 2002Ore Reserves at Dec 27, 2002

ESKAY CREEK MINEESKAY CREEK MINE2004 Budget2004 Budget

2004 Budget Statistics:

� DSO tonnes 135,000, 370 tpd.

� Mill tonnes, 110,000, 300 tpd.

� Grade: 42.1 gpt Au, 2060 gpt Ag.

� Payable Au ounces: 310,000.

� Payable Ag Ounces: 14,987,000.

ESKAY CREEK MINEESKAY CREEK MINE2004 Budget2004 Budget

2004 Budget Statistics:

• Capital Expenditures: $8.4 MM.

• Total Cash Costs: $654/tonne

CDN.

• Total Cash Costs: $110 US/ounce.

• Cash Flow: $66.2 MMUSD.

2004 BUDGET SITE COSTS

Services

9%

Exploration

DD

5%

Other

1%

Total

Transporation

12%

Mill

4%

G & A

4%

Roads

1%

Total Mining

21%

Total Smelter

43%

Eskay Creek Ore Bodies: 2004 Mine Plan

10200

10600

10800

11000

11200

800m

600m

21B

11400

400m

10400

10000

Resource models

21C-south pod

21C-north

NEX

HW

109

12EPumphouse

NEX&HW Deep

1000m

900m

800m

700m

600m

500m

400m

300m

10200

10600

10800

11000

11200

800m

1000m

600m

21B

11400

400m

10400

10000

Resource models

21C-south pod

21C-north

NEX

HW

109

12EPumphouse

NEX&HW Deep

1000m

900m

800m

700m

600m

500m

400m

300m

0

40

80

120

160

109 21B 21C HW NEX PMP

To

nn

es (

000s)

0.0

40.0

80.0

120.0

160.0

Au

E (

gp

t)

Tonnes

AuE

N

ESKAY CREEK MINEESKAY CREEK MINE–– April, 2004 April, 2004

- Snapshot of Eskay

Creek.

- Eskay People

- Major Issues &

Exploration.

ESKAY CREEK MINEESKAY CREEK MINE

General Manpower

Statistics

Barrick – 155

Contractors – 194

total – 349

Approximately a third

are from the Tahltan

First Nation

Involvement ofInvolvement of TahltanTahltan

First NationsFirst Nations

� Percentage of Employment 34%

� Joint Ventures (Arrow-Tahltan Trucking, Spatsizi Remote Site

Services, Procon-proposed also Tahltan Nation Development Corporation)

� Income and donations (to date -LOM): C$93M

� Apprenticeships (Mechanics, electricians, chefs, warehouse)

� Quarterly Meeting Updates – Opportunites for

Increased Involvement and Increased Capacity

ESKAY CREEK MINEESKAY CREEK MINE

Joint Ventures

1. Arrow – TNDC

Transportation

Systems

2. Spatsizi Remote

Services

ESKAY CREEK MINEESKAY CREEK MINE

Road maintenance and

material handling

contract with Tahltan

Nation Development

Corporation (TNDC)

ESKAY CREEK MINEESKAY CREEK MINE–– April, 2004 April, 2004

- Snapshot of Eskay

Creek.

- Eskay People

- Major Issues &

Exploration.

0

50,000

100,000

150,000

200,000

250,000

300,000

Mill Tonnes

DSO Tonnes

Mill Tonnes 120,450 120,780 122,230 127,750 127,750 67,586

DSO Tonnes 135,050 135,050 109,506

2003 2004 2005 2006 2007 2008

To

nn

es

MILL & DSO ORE (350tpd)MILL & DSO ORE (350tpd)

Major IssuesMajor Issues

- Exploration: Three main areas of focus.

- Mine & Mill throughput optimization.

- Effective and respectful transition to a mill only

operation at reduced production rates.

2004 DIAMOND DRILLING2004 DIAMOND DRILLING

Definition Exploration

Underground (m) 16,500 16,500

Surface (m) 3,000 2,000

Development req'd (m) - 300

Total $ ($US millions) 0.85$ 1.42$

21B Zone

Pumphouse

Zone

21C South

70 Stope

21E

Zone

NEX

Zone

HW

Zone

21A & 21C

Resource

Deep Adrian

Resource

109

Zone

21C North

Water Tower

Resource

21C ‘Mid’

Resource

21C South

76 Stope

N

RESERVES & RESOURCESRESERVES & RESOURCES

5 Ramp Extension

“Deep Adrian”

and NEX targets

Planned extension

for 2004

“44 Zone”

NEX

N

1000m

800m

600m

400m

200m

0m

HW Zones

Bowser

Sediments

500m

Contact

Mudstone 21B Zone

NEX Zone

109 Zone

msl

Basalt

sequence N

Longitudinal Section Looking West Across The Deposit

Deep Adrian

88

66

21 Zone

Deposits

22 Zone

>

>

>

>

>

>

1,000

*

0

metres

500

58

57

56

55

54

53

22 Zone22 Zone –– Location MapLocation Map

22 Zone Access 22 Zone Access –– 72 Ramp 72 Ramp

Major IssuesMajor Issues

- Exploration: Three main areas of focus.

- Mine & Mill throughput optimization.

- Effective and respectful transition to a mill only

operation at reduced production rates.

Major IssuesMajor Issues

- Exploration: Three main areas of focus.

- Mine & Mill throughput optimization.

- Effective and respectful transition to a mill only

operation at reduced production rates.

Thank You.Thank You.