PERTH (miningweekly.com) – Dual-listed Copper Mountain Mining has estimated that its Eva copper project, in Queensland, would require a capital investment of $350-million to develop.

A feasibility study, results of which were announced on Tuesday, found that the project would produce 334-million tonnes of ore and waste from five deposits over an initial mine life of 12 years. Some 117-million tonnes of ore would be mined during this period, with the project producing an average of 90-million pounds a year of copper and 19 000 oz/y of gold.

Over the mine life, Eva would produce an estimated 959-million pounds of copper.

The feasibility study estimated an after tax net present value of $256-million and an after tax internal rate of return of 28%, while C1 cash costs have been estimated at $1.74/lb of copper produced.

“The results of the Eva feasibility study clearly demonstrate the quality and size of this asset,” said Copper Mountain president and CEO Gil Clausen.

“Eva has the potential to add significant cash flow to our operating base, at one of the lowest capital intensities for near-term greenfield projects anywhere, in the best mining jurisdiction in the world.”

Clausen said that ASX- and TSX-listed Copper Mountain would finance the capital spend in a non-dilutive manner through restructuring the company’s current debt and internal cash flows.

“We are currently in advanced discussions on debt options and are evaluating the best alternative for shareholders. Until we have a definitive full funding solution in place, which we expect in the coming months, we will not commence construction, nor incur large project costs.

“Our objective is to provide low-risk, high-value development options to our shareholders and we will be conservative in financing our growth plans. The organic growth pipeline at Copper Mountain is impressive, and we believe it will be largely financed internally.”

Meanwhile, Clausen pointed out that the feasibility assumed no benefit from the resources in the oxide cap, which had been treated as waste material.

“The company believes that the oxide copper at Eva may be recoverable economically based on preliminary leaching testwork. A metallurgical testwork programme is currently under way and we expect to complete our evaluation in early 2019,” he said.

FLAGSHIP UPDATE

Besides the Eva project, the company also owns the Copper Mountain mine in British Columbia, Canada.

On Monday, the firm published an updated life-of-mine production plan and guidance for Copper Mountain, based on updated mineral resources. It excludes any other mineral resource categories or production from the New Ingerbele deposit.

Total material moved is expected to be 572-million tonnes over 14 years, with total ore mined expected to be 148-million tonnes and total waste expected to be 424-million tonnes. The company is treating 13.5-million tonnes of inferred resource within the pit shell as waste. Using average recoveries of 79% for copper, 68% for gold and 71% for silver, total production is expected to be 925-million pounds of copper, 333 000 oz of gold and 4.2-million ounces of silver.