PERTH (miningweekly.com) − Base and precious metals developer Finders Resources on Monday reported that a recently completed bankable feasibility study (BFS) into its Wetar copper project, in Indonesia, confirmed the project’s robust economic viability.

Based on the BFS, the project had a net present value of $304-million, with an initial rate of return of 62% on the base case scenario.

The project is expected to produce some 150 000 t of copper over a nine year life.

Finders said that assuming construction started early in the fourth quarter of this year, full production would likely be achieved by the end of 2013.

The study was based on a three-stage ramp-up to full production of around 25 000 t/y copper cathode.

Under stage one of the expansion, the existing 1 825 t/y demonstration plant would be restarted within three months of a board decision to proceed, with production expanding to around 7 000 t/y with the commissioning of the expanded demonstration plant.

Full capacity would be reached with the recommissioning of the Whim Creek plant, about 20 months after the start of construction activities, with the 25 000 t/y production target reached by 2013.

The total capital cost for the project would likely be around $155-million, Finders said.

MD Chris Farmer said that higher grades and recoveries achieved during the demonstration phase had the potential to add a full year’s production, and $43-million to the project’s net present value.

“We have recently achieved a number of key milestones in establishing Finders as one of the few listed copper companies with potential for near-term production. This BFS indicates that the value of the Wetar copper project is significantly more than our current market capitalisation even though it excludes a number of significant potential upsides including improved grade and recoveries achieved during the demonstration phase and potential satellite deposits in the tenement areas,” said Farmer.

Meanwhile, Farmer noted that Finders was still continuing with its project financing options, as well as the re-zoning to excise the project area from conversion forest classifications.
 

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