The Kutcho project is located 330km to the north of Smithers in central British Columbia. The project is relatively remote and power supply options will be a critical factor to project development. Wood Mackenzie assumes that the Minto Extension and Santo Domingo projects are higher priority in Capstone's development portfolio. In its 2013 Annual Report Capstone announced that, after the acquisition of Pinto Valley, Kutcho no longer warranted further development. A formal plan to dispose of the asset was initiated. Under Capstone Mining's capital spending revision program announced in September 2015, the company cut its maintenance costs at Kutcho to a minimal amount ($0.1 million) and recorded an impairment of $44 million. The assets remain for sale.
The 2011 Prefeasibility Study estimated initial capex at C$187.3 million inclusive of a 10% contingency.
In the 2017 Prefeasibility Study, the total capital cost was estimated as C$220.7 million, inclusive of 15% contingency. A total of C$34.77 million in costs related to underground and surface mobile equipment and LNG power generators was converted to capital leases at an interest rate of 5%. These costs therefore appear as opex rather than capex.