For the three and six months ended June 30, 2022
MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
For the three and six months ended June 30, 2022 and 2021
The following Management's Discussion and Analysis ("MD&A") of Doré Copper Mining Corp. ("Doré" or the "Corporation") should be read in conjunction with the unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2022 and the notes thereto. The Corporation's unaudited condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"). Unless otherwise stated, all amounts discussed herein are denominated in Canadian dollars. This MD&A was prepared as of August 18, 2022 , and all information is current as of such date. Readers are encouraged to read the Corporation's public information filings on SEDAR at www.sedar.com.
This discussion provides management's analysis of Doré Copper Mining Corp.'s historical financial and operating results and provides estimates of Doré Copper Mining Corp.'s future financial and operating performance based on information currently available. Actual results will vary from estimates and the variances may be significant. Readers should be aware that historical results are not necessarily indicative of future performance.
Doré Copper Mining Corp. (the "Corporation" or "Doré"), (formerly AmAuCu Mining Corporation ("AmAuCu")), was incorporated under the laws of Canada on April 11, 2017, and through its 100% owned subsidiary, CBay Minerals Inc. ("CBay") owns an interest in mineral properties located in Chibougamou, Quebec, for the purposes of exploration and evaluation. The Corporation's office is located at 130 King St. W., Suite 1800, Toronto, Ontario.
On December 13, 2019, the Corporation completed a reverse takeover transaction (the "Transaction" or "Qualifying Transaction"), pursuant to which AmAuCu amalgamated with a wholly owned subsidiary of ChaiNode Opportunities Corporation ("ChaiNode"), and was subsequently renamed Doré Copper Mining Corporation (see note 10). The Corporations common shares were subsequently listed on the Toronto Stock Venture Exchange ("TSX-V") and began trading under the symbol "DCMC" on December 17, 2019.
The Corporation's main assets, held through its 100% owned subsidiary, CBay Minerals Inc., include the Corner Bay deposit, the Cedar Bay past producing mine, the Copper Rand past producing mine, the Devlin deposit, the Copper Rand mill and tailings management facility. Other deposits include the Lac Doré deposit, and various exploration targets on Portage Island.
The last operating mine within the Corporation's optioned assets was the Copper Rand mine which ceased operations in December 2008 when the assets were owned by Campbell Resources. The Corner Bay mine produced a 40,000 tonne bulk sample in September 2018. After mining stopped, the mill was put in a shutdown protocol in late 2008 and early 2009 where flotation cells, pump boxes, thickeners and slurry lines were all emptied. The ball mills were emptied of material, liners were removed and the mills were raised on jacks. Afterwards the equipment was deenergized.
The Corporation is engaged in the acquisition, exploration, evaluation and development of mineral properties.
During Q2 2022 a total of 19,721 meters were drilled on the Corner Bay and Doré Ramp deposits.
The Corporation is completing a 45,000 metre drilling campaign at Corner Bay in 2022. This drilling program is part of the feasibility study work to upgrade the Inferred mineral resource to the Indicated category. The total drilled in Q2 2022 was 18,377 meters with 21 holes completed and three holes in progress. Infill drilling was done in areas of the Main Vein above and below the dyke. Results from the infill program were disclosed in the news releases dated July 11 and August 11, 2022 and are summarized in the table below. The time to receive assay results is now similar to pre-COVID 19 pandemic.
Some of the highlights of the program included:
Summary of the assay results from the 2022 drilling program:
1. The true width of the structures intersected is estimated at approximately 55-75% of the downhole width.
One hole was drilled two kilometers south of the Corner Bay deposit in an area with structural similarities to Corner Bay. No significant mineralization was intercepted.
The Corner Bay deposit is hosted by the intrusive Lac Doré Complex on the southern flank of the Chibougamau anticline. A regional north-northeastern diorite dyke also cuts the area. Several significant shear zones oriented north- south and northwest-southeast have been identified in the area. The Corner Bay area is characterized by copper porphyry style mineralization and by copper mineralization in shear zones commonly associated with dykes related to the Chibougamau Pluton.
The Main Vein is oriented N10ºW orientation dipping 75 to 85 degrees towards the west. To the north, the Main Vein is limited by one of the NW-SE structures while to the south it is open at depth across the "La Chib" fault. The mineralization varies from 15 centimeters to 8 meters thick, located within a shear zone varying in width from 2 to 25 meters. The proposed mining zones have an average thickness of 3.48 meters. The Main Vein below the dyke to the south is thicker than the Main Vein above the dyke. The Main Vein lateral extension is approximately 1 kilometer and it remains open at depth down-dip.
The Doré Ramp is a copper-gold deposit that was drilled in the mid-1980s until 1992. It is located approximately 2.5 kilometers to the southwest of the Copper Rand mine. A 1.07 kilometer exploration ramp was driven to a depth of 160 meters in the early 1990s. As with Copper Rand, the deposit is located on the south side of the Lac Doré fault. An historical estimate was reported by Westminer in 1992 on the upper part of the Doré Ramp deposit.
During the quarter, one drill hole of 1,334 meters was completed to test the extension of the deposit at a depth of 875 meters below surface and approximately 350 meters down plunge from the deepest historical drill hole. The hole intercepted 2.4 meters of 4.37% Cu, 0.87 g/t Au and 13 g/t Ag, including 0.5 meters of 17.6% Cu and 1.76 g/t Au. The mineralized zone was immediately adjacent to a mafic dyke as was observed in the upper part of the deposit and at Copper Rand. The company is currently compiling the historical data with the goal of developing a geological model to guide a more complete drill program on the deposit in the future.
The results of the Preliminary Economic Assessment ("PEA") were issued in a news release dated May 10, 2022 with the Technical Report filed on SEDAR on June 15, 2022. The PEA supports a hub-and-spoke operation with the high- grade Corner Bay copper-gold deposit as its main underground mine along with the Devlin copper deposit and the former Joe Mann gold mine providing feed to its Copper Rand mill (collectively, the "Project"). The PEA demonstrates attractive project economics with optionality for expansion into a significantly larger operation, re-establishing the Chibougamau mining camp as a long-life copper and gold producer.
The PEA envisions a hub-and-spoke model operation starting first with the underground development of the Devlin and Corner Bay (main deposit) deposits via existing ramps Once the Devlin deposit is mined out after approximately four years, production at the Joe Mann mine would start and be funded out of cash flow from operations. Joe Mann benefits from an existing headframe and shaft, including all surface infrastructures.
A fixed crushing circuit and ore sorter plant (XRT) would be installed at Corner Bay and would reject the low-grade and dilution material from the Devlin and Corner Bay mines. The high-grade material would be transported by trucks to the refurbished and optimized Copper Rand mill. The filtered tailings would be transported to a dry stack tailings facility, which uses part of the footprint at the existing TMF.
The copper and gold concentrate produced would be transported to the port of Québec City for onward shipping to international smelters, or to a local smelter. Ocean Partners Ltd. has the off-take agreement with treatment and refining charges terms are within standard market rates.
The table below summarizes the key metrics of the PEA.
The PEA for the Project outlines an initial (pre-production) capital cost estimate of $180.6 million and sustaining capital costs over the life of mine ("LOM") of $402.4 million, which includes the capital to restart Joe Mann and overall closure costs of $53.6 million. Initial underground capital costs include the rehabilitation of the portals at Corner Bay and Devlin, facilities for water capture and treatment at both locations, construction of a 16 km, 34 kV powerline to Corner Bay, and 3.25 km to Devlin), a crushing circuit and ore sorter at Corner Bay, improvements to existing roads and 4 km of new roads connecting Corner Bay and Devlin, a new feed material reception and mill feed conveyor, ball milling and gravity circuit, rehabilitated flotation and concentrate filtration circuit and new tailings filtration circuit at the mill, and preparation of an area on the existing TMF for the placement of filtered tailings and a water treatment facility.
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Dore Copper Mining Corp. published this content on 19 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2022 14:53:06 UTC.