VANCOUVER, BC--(Marketwired - September 22, 2017) - Western Copper and Gold Corporation ("Western" or the "Company") (TSX: WRN) (NYSE American: WRN) (
CASINO PROJECT FEASIBILITY STUDY PRICING REVIEW
In association with M3 Engineering & Technology Corp., the Company has conducted a pricing review (the "Review") of the January 25, 2013 Casino Project Feasibility Study (the "Feasibility Study"). The Review indicates that the Casino Project's economic metrics, such as internal rate of return and net present value, at current commodity prices and exchange rates are comparable to the base case metrics in the Feasibility Study. Capital and operating costs were updated as part of the analysis, including updated costs for mining and major process equipment, power plant costs, major bulk materials (e.g. structural steel), and construction and operating labour rates. There has been no change to the mineral resource or reserve estimate or to other technical information contained in the Feasibility Study.
The Feasibility Study showed that the Casino Project is expected to have an after-tax net present value of $1.83 billion (8% discount rate), an after-tax internal rate of return of 20.1% and a 3.0 year pay-back period over its 22 year mine life. Commodity prices used in the Feasibility Study base case were as follows: Copper -- US$3 per lb; Gold -- US$1,400 per oz; Molybdenum -- US$14 per lb; and Silver -- US$25 per oz. The exchange rate applied to commodity prices was US$0.95 to $1.00.
The full text of the Feasibility Study is available under the Company's profile on SEDAR.
ROAD FUNDING
As previously announced on September 5, 2017, the Yukon Government and the Federal Government have committed to fund the upgrade of the existing access road and 30% of the new access road to the Casino Project as part of the Yukon Resource Gateway Application ("Gateway"). Recent discussions with the Yukon Government indicate that work towards building these roads is underway, starting with permitting for construction of a by-pass that will allow mining-related traffic to avoid the town of Carmacks, a key mitigation measure identified by the local community.
PERMITTING
The Company has been advancing certain key permitting activities required to prepare its Environmental and Socio-Economic Statement ("ESE Statement"). A large part of the initiative has been the Best Available Tailing Technology ("BATT") review process relating to the design of the tailings and waste management facility. In this regard, Western is following the roadmap identified by the British Columbia Government, and being contemplated by the Yukon Government, to receive and consider feedback from key stakeholders. The goal is to come to a tailings management facility design that uses the best available tailings and mine waste deposition technology and has buy-in from the community, First Nations, and regulatory authorities.
Due to the timing of BATT review process and Yukon Government timelines on the permitting of the road upgrades as part of the Gateway funding, the Company has advised the Yukon Environmental and Socio-economic Assessment Board that it will delay submission of its ESE Statement to the end of 2018.
Cameron Brown, P. Eng, the Company's VP Engineering and a Qualified Person (as defined in National Instrument 43-101) has read, verified and approved the scientific and technical disclosure contained in this news release.
ABOUT WESTERN COPPER AND GOLD CORPORATION
Western Copper and Gold Corporation is developing the Casino Project, Canada's premier copper-gold mine in the Yukon Territory and one of the most economic greenfield copper-gold mining projects in the world. For more information, visit www.westerncopperandgold.com.
