PERTH (miningweekly.com) – An optimisation study into junior Venturex Resources’ Pilbara copper-zinc project, in Western Australia, has shaved 28% off the project’s expected capital costs and increased the mine life from eight-and-a-half to 11 years.
The optimisation study has estimated that capital costs for the Pilbara project would run to A$20-million, with copper production estimated at 12 500 t/y and zinc production at 32 200 t/y.
This was compared with the 2012 feasibility study estimates that the project could deliver 16 500 t/y of copper, 30 000 t/y of zinc and 200 000 t/y of silver, with a mine life of eight-and-a-half years, based on a processing rate of one-million tonnes a year.
The optimisation study identified the opportunity to use an openpit mining operation to extract the top portion of the Sulphur Springs deposit, before moving to underground mining, resulting in a significant reduction in the estimated capital cost of the underground mine and deferring these costs until the fourth year of operation.
The new study also included the Kangaroo Caves deposit to the mining inventory, which Venturex said provided strongly leveraged exposure to a rising zinc price.
Meanwhile, estimated C1 cash costs for the life-of-mine have also decreased from the 2012 estimate of A$1.57/lb to A$0.84/lb after by-product credits.
Venturex MD John Nitschke said on Wednesday that the optimisation study outlined a compelling financial and technical development opportunity.
“We are very pleased with the results, which have confirmed the potential for a financially robust, long-life mining development at the Pilbara project, with significant upside.”
Nitschke said the addition of the Kangaroo Caves deposit into the mine plan was pleasing, as it would increase leverage to the zinc price, which the market was bullish about.
“There are sectors of this deposit that have relatively poor drilling coverage, particularly close to the surface, and these offer excellent potential for future additions to the resource,” he added.
Nitschke said that while the revised mine plan would require additional permitting, the time would be purposefully spent on promoting the project and securing project finance.
“It will also allow us to push forward with our assessment of the exploration potential to unlock the next chapter of discoveries in this underexplored region.”