Pacific Booker Minerals Inc.
, Stock Forum
) shares shot up 67% to $7 Tuesday as investors reacted to news of a favourable court decision regarding its proposed Morrison gold-copper mine near Smithers in north central British Columbia.
At Tuesday’s close, Pacific Booker is left with a market cap of $86.5 million, based on 12.2 million shares outstanding. The 52-week range is $8.38 and $2.45.
The B.C. Supreme Court decision, rendered Monday, vindicates the company’s earlier move to challenge the provincial government’s October, 2012, rejection of the proposed mine on the basis of a “risk versus benefit” criteria that the province said the company had failed to meet.
According to the company’s press release
, following a hearing in August 2013, B.C. Supreme Court Justice Kenneth Affleck ruled that: “The petitioner is entitled to a declaration that the executive director’s referral of the application for a certificate to the ministers and the ministers’ decision refusing to issue the certificate failed to comport with the requirements of procedural fairness.
There will be an order in the nature of certiorari quashing and setting aside the ministers’ decision and an order remitting the petitioner’s application for a certificate to the ministers for reconsideration. The petitioner is entitled to costs.”
In other words, the provincial government must reconsider Pacific Booker’s application for an environmental certificate.
Pacific Booker is proposing to develop a 30,000 tonnes-per-day open-pit mining and milling operation for the production of copper/gold concentrate and molybdenum concentrate.
Production is estimated at approximately 135,000 to 160,000 tonnes of concentrate per year, containing copper, gold and molybdenum.
The total mineable reserve is estimated at 224.2 million tonnes with an average grade of 0.33% copper, 0.163 grams gold, and 0.004% molybdenum.
Metal recoveries over a 21-year lifespan are estimated at 1.4 billion pounds of copper, 658,090 ounces gold, and 10 million pounds of molybdenum, with a proposed startup date in 2016.