Name and Location
Los Calatos copper/molybdenum project, Peru.

Client
Metminco.

Project Description
A final mining study on the proposed Los Calatos copper project has returned improved economics, including an increase in expected output and 57% increase in the net present value.

The project has a mineable quantity of 134.3-million tonnes grading 0.89% copper and 0.036% molybdenum.

The final report estimates that the Los Calatos project will have an average life-of-mine (LoM) production of 50 000 t/y of copper in concentrate over a 22-year mine life.

LoM copper production is estimated at 1.1-million tonnes in concentrate.

Key aspects of the production profile include:

• two decline systems, accessing high-grade supergene material at an initial depth of 150 m below surface; and
• production of three-million tonnes in the first year of operation, five-million tonnes in Year 2, with steady-state production of 6.5-million tonnes being reached in Year 3 and to continue to Year 21.

Net Present Value/Internal Rate of Return
The project has an ungeared net present value, at an 8% discount rate, of $447-million and an ungeared internal rate of return of 16.6%, with a payback period of 4.85 years.

Value
Preproduction capital expenditure is estimated at $655-million.

Duration
The project has a short lead time to production, with a forecast construction period of 18 to 24 months.

Latest Developments
Based on the results of the mining study, Metminco will initiate a development programme to progress the project, subject to the availability of funding.

The programme will include the completion of a prefeasibility study and an in-fill drilling programme to advance the current mineral resource to measured and indicated categories and to facilitate the collection of metallurgical samples.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Metminco, tel +61 2 9460, fax +61 2 9460 1857 or email info@metminco.com.au.