Hot on the heels of a positive preliminary economic assessment (PEA) for the expansion of its Yauricocha base and precious metals mine, in Peru, Toronto-based Sierra Metals on Monday announced the outcomes of its PEA for the expansion at the Bolivar mine, in Mexico.
The PEA supports the company’s plan to develop and grow the Bolivar mine in staged steps from 3 000 t/d currently, to 3 600 t/d in the first quarter of 2019, and ultimately to 5 000 t/d in mid-2020, CEO Igor Gonzales said in a news release.
The PEA estimates a net present value of $214-million at an 8% discount rate and a 550% return-on-investment potential.
The eleven-year life-of-mine capital cost will be $96-million at a total operating unit cost of $21.18/t, when processing 5 000 t/d of copper at a recovery rate of 85%.
The $96-million capital expenditure incorporated into the PEA includes exploration drilling to increase the mineral resources and convert the existing resources to reserves.
Further, the PEA reflects an aggressive development programme that is designed to open a mineable reserve at depth and on strike.
Gonzales added that Sierra Metals is continuing its brownfield exploration programmes and that it expected to grow the Bolivar mine mineral resources this year.