PERTH (miningweekly.com) – A mining study on the Los Calatos copper project, in Peru, has estimated that the project could produce up to 45 000 t/y of concentrate over a 17-year mine life.
ASX-listed Metminco this week said the six-million-tonne-a-year underground mining operation would require a capital investment of some $650-million, while life-of-mine C1 cash costs have been estimated at $1.20/lb, after by-product credits.
“We are pleased with the outcome of the mining study. Although the study is at a high level, it has provided the company with a further development option that potentially yields very good financial returns and paves the way for Metminco to become a midtier copper producer,” Metminco MD William Howe said.
He noted that there was a significant gap in the market for near-term development copper projects such as Los Calatos.
“Located in an excellent jurisdiction and infrastructure setting, requiring modest capex and producing around 50 000 t of copper metal annually, Los Calatos is a deliverable mine,” Howe said.
The project would take between 18 and 24 months to build and underground mining would start only around 150 m below surface.
The mining study was based on a resource estimate of mineable quantity of 94-million tonnes, grading 0.88% copper and 0.051% molybdenum. Over the life of the mine, Los Calatos would produce some 765 160 t of copper.
Howe said the company would now focus on advancing the project towards development, subject to securing funding.
“Attracting a partner for Los Calatos remains a priority and we are well positioned to further engage with a number of parties currently undertaking detailed due diligence.”
Future work on the project would include feasibility studies and an infill drilling progamme to advance the mineral resource to measured and indicated categories and to facilitate the collection of metallurgical samples.