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PERTH (miningweekly.com) – Metals miner PanAust was considering an expanded development for the Frieda River copper/gold project, in Papua New Guinea, following further data analysis.
The most recent feasibility study had considered a project with the potential to deliver an openpit mining operation averaging around 190 000 t/y of copper and 280 000 oz/y of gold, over a 20-year life-of-mine.
However, as part of its due diligence, PanAust conducted a scoping study based on a smaller-scale 24-million-tonne-a-year conventional openpit and flotation operation, providing an average 100 000 t/y of copper and 160 000 oz/y of gold over an 18-year mine life.
PanAust, which recently bought Glencore’s 80% stake in Frieda River for $125-million, reported on Tuesday that the due diligence project parameters have now been superseded by further data analysis, with the company contemplating an increased output in the planned feasibility study.
The base-case study would consider an openpit and single process plant with a processing rate of some 30-million tonnes a year, to deliver 125 000 t/y of copper and 200 000 oz/y of gold.
The preliminary capital cost for the project had been estimated at about $1.7-billion, excluding mining fleet and power station costs, while C1 cash costs had been estimated at between $1.30/lb and $1.40/lb.
Based on the current resource of around 600-million tonnes, the project would have an expected mine life of 20 years.
PanAust told shareholders on Tuesday that a staged development approach would be considered for the Frieda River project, which would require lower initial capital expenditure, with a deferred capital expansion of the processing facilities in years three to five of the operation.
Further, the feasibility study would also evaluate a hydro-power option, augmenting the need for oil generator power.
The feasibility study was targeted for completion before the end of November next year, and a special mining licence would be lodged simultaneously.
PanAust currently holds an 80% interest in the Frieda River project, with fellow-listed Highlands Pacific holding the remaining interest.