PERTH (miningweekly.com) – A scoping study into the Marg multi-metals project, in Canada's Yukon territory, has found that the project could support a production rate of 1.25-million tonnes a year from an underground operation, with a seven-and-a-half-year mine life.

The Marg project is forecast to produce 241 400 t of zinc, 81 400 t of copper, 97 300 t of lead, 8.69-million ounces of silver and 104 000 oz of gold over the seven-year period.

ASX-listed MinQuest said on Wednesday that the scoping study estimated that the project would require a capital investment of $174-million, and could deliver a net present value of $113-million and an internal rate of return of 29%.

The scoping study was based on the currently defined mineral resource of 9.8-million tonnes, grading 1.3% copper, 1.8% lead, 3.5% zinc, 46 g/t silver and 0.75 g/t gold.

MinQuest MD Jeremy Read reported that the outcome of the scoping study suggested that the Marg project had the potential to become an economically viable project, adding that MinQuest was looking to start a prefeasibility study on the project during the spring of 2016.

“Completion of the first-ever scoping study on the Marg project is a very positive and significant milestone,” Read said.

He added that the project was open in all directions, and that further exploration drilling could significantly increase the mineral resource, further enhancing the project economics.

MinQuest previously entered into a farm-in agreement with project owner Golden Predator Mining Corporation to earn a 75% interest in the Marg project. The ASX-listed company was currently in the process of satisfying the earn-in and expenditure conditions to earn an initial 25%.

“MinQuest’s strategy is to acquire multi-element base metal projects during the low point in the metals cycle and progress those projects through scoping and feasibility studies in order to position the company for the inevitable upswing in metals prices,” Read said on Wednesday.