PERTH (miningweekly.com) – An updated definitive feasibility study (DFS) on the Cloncurry copper/gold project, in Queensland, has delivered a number of improvements compared with the 2014 DFS, including a longer mine life, and a higher net present value (NPV) and internal rate of return (IRR).
While both the DFS and updated DFS estimated production of 39 000 t/y of copper and 17 200 oz/y of gold from a seven-million-tonne-a-year operation, the updated DFS increased the mine life from 11 years to 14 years.
The original DFS considered the development of the larger Little Eva deposit, as well as three smaller satellite deposits, while the updated DFS also included the development of the Little Eva and five smaller satellite pits.
Capital costs for the project declined slightly from the A$294-million estimated in the original DFS to A$288-million, while the expected pre-tax NPV increased by 34% from A$2.9-billion to A$3.6-billion, and the IRR from 29% to 36%.
The updated DFS was based on new resource estimates and geological models at Little Eva and the Bedford deposits, as well as mineral resource and ore reserve estimates for the Turkey Creep deposit, and the inclusion of Turkey Creek into the mine plan.
The updated DFS also included updated cost estimates and a reduction in engineering and construction costs.
Altona pointed out on Thursday that permitting for the Cloncurry project was largely completed, with an environmental authority received and a mining lease granted.
Altona is looking for a partner to develop the Cloncurry project, after scrapping a deal with China’s Sichuan Railway Investment Group in July this year.