JOHANNESBURG (miningweekly.com) – A preliminary economic assessment (PEA) of TSX-listed Copper Fox’s Van Dyke copper project in Miami, Arizona, has shown the project could generate gross revenue of $1.37-billion over an 11-year mine life, based on a $3/lb estimated copper price.
The PEA also suggested that Van Dyke was a technically sound on site leach (ISL) copper project, using underground access and conventional solvent extraction and electrowinning recovery methods with low cash costs, strong cash flows and an after-tax internal rate of return of 27.9% after three years.
The PEA indicated that the project could produce 60-million pounds of copper in the first six years. Although production would decline thereafter, the life-of-mine operating costs would remain at $0.60/lb.
"The PEA has fulfilled its purpose and indicates that the project warrants more detailed testing and engineering. We are pleased with the positive results of the PEA given the conservative approach used to design the project.
“The PEA has identified several aspects that, with positive results from additional testing and engineering, could extend the mine life and significantly increase project economics, indicating that Van Dyke could become a strong project in the midsize copper development space,” CEO Elmer Stewart said.
Other recommendations that could have a significant positive impact on mine life and project economics included a diamond drilling programme to expand the size of the resource and upgrade the existing inferred resource; an ISL test programme designed to further investigate overall metal, refine well field design and determine the extent of rock stimulation required, if any; and opportunities to lower capital, sustaining and operating costs by reducing the size of the underground development and further defining operating procedures.
A total of 5 300 m of underground development was planned over the mine life and would be completed using conventional drill and blast tunnelling techniques by mining contractors.