Name of the Project
Josemaría copper/gold project.

Location
San Juan province, Argentina.

Client
NGEx Resources.

Project Description
A prefeasibility study (PFS) on the project has shown robust economics.

The project has an initial probable mineral reserve of 1.01-billion tonnes of 0.29% copper, 0.21 g/t gold and 0.92 g/t silver (or 0.41% copper equivalent).

The PFS envisages a conventional openpit mining operation using the latest in autonomous haul truck technologies.

Mine planning incorporates stockpiling strategies to focus on the early extraction of the highest-grade ore in addition to deferring waste stripping. Including prestripping, the openpit will be in operation for 23 years, delivering ore to the mill for 20 years, with a life-of-mine (LoM) strip ratio of 0.71:1.

A maximum mining rate of about 115-million tonnes a year, including waste, is required to provide the nominal 150 000 t/d of ore to the mill.

About 1.01-billion tonnes of ore is expected to be processed over the LoM.

Primary crushed ore will be transported by surface conveyor to a coarse-ore stockpile, and then transferred to the process plant. The process considers the use of high-pressure grind rolls as part of a three-stage crushing circuit, followed by conventional ball mill grinding and sulphide flotation. Design throughput is 150 000 t/d. Water obtained from the concentrate thickener, tailings thickener and concentrate filter will be recovered and sent back to the process plant to be used as make-up water.

Over the LoM, the mine will produce more than 5.4-billion pounds of copper and 4.6-million ounces of gold, with output averaging about 125 000 t/y of copper, 230 000 oz/y of gold and 790 000 oz/y of silver.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated pretax net present value, at an 8% discount rate, of $2.9-million and an internal rate of return of 18.6% at $3.00/lb copper, with a payback of 3.4 years.

Value
Preproduction capital is estimated at $2.75-billion.

Duration
The project is expected to take about 30 months to build.

Latest Developments
NGEx Resources has said that it will fast-track Josemaría towards production by starting work on a feasibility study, securing water rights and advancing the environmental permitting plans.

Key Contracts and Suppliers
SRK Consulting, with input from Ausenco Engineering Canada, Knight Piésold, BGC Engineering, Merlin Geosciences, and Gino Zandonai (PFS).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
NGEx Resources, tel +1 604 689 7842 or email ngexresources@namdo.com.