ema Gold Corp. says its Cerro Casale joint venture project in Chile will cost nearly $2 billion US to develop but is estimated to contain 16.9 million ounces of gold, five billion pounds of copper and 28.5 million ounces of silver.

The Vancouver company said Monday the project it is trying to develop with Arizona Star Resource Corp. requires an initial capital investment of $1.96 billion US and would have a project life of 17 years with a payback period of 4.9 years.

The Vancouver company said it continues to seek major mine development partners for the South American project, which Bema says could produce about 990,000 ounces of gold a year and 294 million pounds of copper.

Bema said the latest appraisal conducted by Mine Quarry Engineering Services Inc. analyzed and modified ore processing concepts and updated the operating and capital costs of a 2000 feasibility study completed by Placer Dome Inc. and updated by Placer in 2004.

Placer eventually decided not to develop the project.

Last month, Arizona Star and Bema completed deals with Placer's new owner, Barrick Gold Corp. to buy its 51 percent interest in the Chilean deposit.

Under the deal, Arizona Star and Bema will jointly pay Barrick $10 million US after any decision to build a mine at Cerro Casale.

Barrick's stake in Compania Minera Casale was formerly held by Placer Dome Inc., which Toronto-based Barrick acquired earlier this year in a multibillion-dollar deal that created the world's biggest gold miner.

Cerro Casale, discovered by Arizona Star and Bema in 1996, is a large undeveloped gold and copper deposit.