Transforming Resources into Mines

Transcription

1 Transforming Resources into Mines YEC LNG Workshop January 18th, 2012 JANUARY 2012

2 CASINO PROJECT TSX: WRN / NYSE Amex: WRN Transforming Resources Into Mines 2

3 CASINO OVERVIEW SIZE LOCATION Reserves: 1.1 billion tonnes Additional inferred resource: 1.7 billion tonnes 120,000 mtpd milling rate Politically stable Yukon, Canada Approximately 380 km NW of Whitehorse Settled Land Claims with First Nations ECONOMICS $1.0 billion NPV at long term prices Very low cash costs TEAM Experienced management Excellent track record TSX: WRN / NYSE Amex: WRN Transforming Resources Into Mines 3

4 CASINO LOCATION 380 km northwest of Whitehorse, Yukon 560 km from year-round port at Skagway, Alaska Low political risk First Nations settled claims Semi-arid environment, favourable topography One-window environmental assessment process 3 4 IN THE PAST MINES YEARS OPENED TSX: WRN / NYSE Amex: WRN Transforming Resources Into Mines 4

5 CASINO PRODUCTION LONG MINE LIFE 23+ Years EXPECTED INITAL PRODUCTION 435 k ozs GOLD 234 M lbs COPPER 13 M lbs MOLYBDENUM 1.6 M ozs SILVER TSX: WRN / NYSE Amex: WRN Transforming Resources Into Mines 5

6 After-Tax Pre- Tax PRE-FEASIBILITY STUDY - APRIL 2011 Note: See note 3 in appendix CAPITAL COSTS ECONOMICS MINE CAPITAL (C$ M) 1,750 POWER PLANT (C$ M) 260 ROAD, PORT, ETC. (C$ M) 120 TOTAL CAPEX (C$ M) 2,130 SEPT 2011 LONG TERM SPOT COPPER (US$/lb) GOLD (US$/oz) 1,761 1,100 MOLYBDENUM (US$/lb) SILVER (US$/oz) FOREIGN EXCHANGE (US$:C$) % (C$ M) 5,800 2,570 8% (C$ M) 3,910 1,570 IRR (100% equity) (%) % (C$ M) 3,964 1,700 8% (C$ M) 2, IRR (100% equity) (%) CASH FLOW (Y1-Y4) (C$ M/y) CASH FLOW ( LOM ) (C$ M/y) PAYBACK (y) Cu CASH COST (net of credits) (US$/lb) TSX: WRN / NYSE Amex: WRN Transforming Resources Into Mines 6

7 CASINO TAX AND ROYALTY LOM Contribution Avg. Annual Contribution Royalty ($M) Property Tax ($M) Taxes on Income ($M) 1, Total Taxes & Royalty ($M) 2, Note above values exclude personnel income taxes paid by employees TSX: WRN / NYSE Amex: WRN Transforming Resources Into Mines 7

8 ELECTRICAL POWER GENERATION & FUEL SUPPLY CASINO POWER PLANT The 150 MW Casino power island consists of: Two gas turbine driven generators with heat recovery boilers supplying steam to a steam driven generator for a combined output of 130 MW. This combined cycle configuration results in efficient, low emissions power generation. Internal combustion engine driven generators operating in simple cycle to produce up to 18.6 MW of black start and standby power. These units have dual fuel capability and operate on natural gas or diesel fuel. LNG storage facility, LNG gasification equipment to convert LNG liquid fuel to essentially natural gas to fuel the power generators. Low grade heat recovery (separate from heat recovery for power generation) for use in LNG gasification, process and space heating TSX: WRN / NYSE Amex: WRN Transforming Resources Into Mines 8

9 Casino Project Power Needs & Characteristics: Typical running load 120 MW Comparatively steady load, ideal for base load generation system Plant operates 24/7, 365 days per year Largest drives are: 28 MW, 22MW Project is remote, off-grid Nature and size of loads requires harmonic filters and PF compensation installation Electrical Power represents about 30 % of cost to process ore. Reliable, cost effective power & fuel supply is key to project success TSX: WRN / NYSE Amex: WRN Title of Presentation Goes Here 9

10 FUEL SUPPLY FOR POWER GENERATION The 2011 Pre-Feasibility Study assumes that LNG from the, soon to be constructed, LNG export facility(s) in Kitimat, BC would be transported by a marine carrier to Skagway, Alaska and transferred to tanker trucks for delivery to the Casino Project LNG supply chain continues to be evaluated for the project, alternative supply chains being investigated, include: Direct trucking of LNG from Kitimat to the project site thereby eliminating the marine carrier portion of the supply chain and transshipment across the US-Canadian border. Natural gas or LNG from Eagle Plains, Yukon. Construction of a natural gas pre-treatment facility and LNG liquefaction plant in Fort Nelson, BC and trucking the LNG to Casino. Construction of a 130 Km, eight inch diameter natural gas pipeline to connect to the proposed Alaska-Canada Pipeline TSX: WRN / NYSE Amex: WRN Transforming Resources Into Mines 10

11 Base Load, Power Generation Technologies Evaluated by WC&G: Coal fired power plant (CFB) Natural Gas & LNG fuelled power plant Diesel fuelled internal combustion engine & gas turbine driven generators Simple cycle & combined cycle configurations Alternative technologies evaluated but deemed unacceptable for base load purposes: Solar Wind Power Biomass Geothermal TSX: WRN / NYSE Amex: WRN Title of Presentation Goes Here 11

12 Conceptual 150 MW CCGT Power Island TSX: WRN / NYSE Amex: WRN Title of Presentation Goes Here 12

13 LNG STORAGE FACILITY IN MOSJØEN, NORWAY TSX: WRN / NYSE Amex: WRN Appendix 13

14 LNG Opportunities Work cooperatively with YEC and others to develop a reliable, cost effective energy for Casino and the Region. Utilize LNG fuelled tractors to haul concentrates and supplies to Casino. Potential to fuel mine haul trucks with LNG in lieu of diesel. LNG has high potential to displace diesel for transportation purposes in the region and as substitute for heating oil resulting in substantial cost savings for Yukon residents. TSX: WRN / NYSE Amex: WRN Title of Presentation Goes Here 14

15 PLAN TIMELINE PFS UP-DATED 4/2011 INITIATE FEASIBILITY STUDY Completed COMPLETE FEASIBILITY STUDY Q SUBMIT ENVIRONMENTAL ASSESSMENT Q RECEIVE INITIAL PERMITS 2015 SECURE FINANCING 2015 INITIATE CONSTRUCTION 2015 PRODUCTION GOLD HEAP LEACH 2017 PRODUCTION MILLING OPERATION 2019 TSX: WRN / NYSE Amex: WRN Transforming Resources Into Mines 15

16 CASINO DESIGH PHILOSOPHY WESTERN COPPER AND GOLD DESIGN PHILOSOPHY Fully committed to using best practices in the design for closure & reclamation, beginning in pre-feasibility stage and carried throughout the detail design, construction and operating phases of the project. Best practice design solutions applied to each facility design. Project embraces sound environmental design and construction principles and strict adherence to environmental standards and regulations. Combined cycle gas turbine technology with additional waste heat recovery for space and process heating represents the most attractive energy solution for the Casino Project. Project financial performance includes a provision of $100 million fund against future reclamation costs. TSX: WRN / NYSE Amex: WRN Transforming Resources Into Mines 16

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