Western Copper and Gold WRN Casino

Western Copper and Gold (WRN.TO, WRN) has started a 10,000 meter drill program on the Casino copper-gold project in Canada’s Yukon Territory. The drill program will be completed by two diamond drill rigs that will punch holes with depths ranging from 150 meters to 400 meters, in an attempt to convert more of the inferred mineralization to the measured and indicated categories where after the additional tonnes could be added to the mine plan.

This very likely won’t have a noticeable impact on the NPV of the project (as the cash flow from the additional years will be severely discounted, although reducing the strip ratio by converting waste into ore could provide an attractive boost), but a longer mine life could make the project more appealing to the eventual buyer (which will undoubtedly be a major copper or gold company which wants to make sure the project has a multi-decade life span before committing to the billions in capex the construction will require).

Drilling will continue until the end of the exploration season at the end of September, but assay results should be released from July on.

Go to Western Copper’s website
The author has a small long position in Western Copper and is looking to increase this position. Please read the disclaimer

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