Name of the Project
Nifty openpit copper mine.

Location
The Patterson province of Western Australia.

Project Owner/s
Metals X.

Project Description
A scoping study has investigated the development of a standalone openpit to mine copper sulphide mineral resources, which have previously been mined using only underground methods. The new sulphide openpit will be developed as a major expansion to the historic oxide openpit. The openpit will be mined over about ten years in four stages and will provide about 23-million tonnes of sulphide feed for the concentrator.

The scoping study envisages the production of between 250 000 t and 270 000 t of copper in concentrate at an average production of 26 000 t/y of copper in concentrate.

The development of an openpit operation at Nifty, as an expansion to the existing openpit, requires minimal works, as the majority of infrastructure and services are already in place, and have been maintained in a ready-to-start condition since suspension of operations in November 2019.

The scoping study has also evaluated the refurbishment of the existing heap-leach solvent extraction/electrowinning facility and the retreatment of the existing heap-leach pads, supplemented with oxide material expected to be mined from the proposed openpit. This option has an eight-year mine life, processing 13-million to 14-million tonnes of existing heap-leach pads at an average grade of 0.4% copper, and an estimated 2.6-million tonnes of additional oxide material at an average grade of 0.9% copper, mined from the proposed openpit.

Potential Job Creation
The project is expected to employ more than 300 personnel at full production.

Net Present Value/Internal Rate of Return
The net present value (NPV) for the combined openpit and heap-leach operation is estimated at $242-million at a 10% discount rate. The internal rate of return (IRR) is estimated at 61%. The openpit has an NPV, at a 10% discount rate, of $181-million and an IRR of 52%, with a payback of three years. The heap-leach operation has an NPV, at a 10% discount rate, of $61-million and an IRR of 106%, with a payback of two years. Payback is estimated at 2.5 years.

Capital Expenditure
Startup capital is estimated at between $40-million to $60-million.

Planned Start/End Date
Not stated.

Latest Developments
A feasibility study, expected to take about eight months and to cost about $10-million, including about $3-million for resource definition drilling, is required for the proposed restart of operations at Nifty on a combined openpit and heap-leach basis.

Following the completion of the feasibility study, a final investment decision is expected to be made in the first half of 2021. It is estimated that recommissioning and preproduction mining will take six months following the decision.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Metals X, tel +61 8 9220 5700 or email reception@metalsx.com.au.