Scoping study boosts Viscaria NPV to $373m
JOHANNESBURG (miningweekly.com) – A recent scoping study at Australian resources company Avalon Minerals’ Viscaria copper and iron project, in northern Sweden, has increased the project’s net present value (NPV) to $373-million, exceeding the originally targeted $300-million.
The ASX-listed minerals developer said the upgraded project value came on the back of a recently announced upgrade in the Discovery Zone mineral resource to 30-million tons and revised mining cost assumptions of $3/lb of copper and $150/t of iron-ore pellets.
“The significantly increased mineral resource has allowed the optimum mining rate to be expanded to 3.5-million tons a year, the mine life to be extended to 10.3 years and cash costs to be reduced to $0.49/lb of copper,” MD Jeremy Read said in a statement on Tuesday.
In addition, the scoping study results indicated that an openpit mining scenario would produce between 15 000 t/y and 22 000 t/y of copper, while preproduction capital expenditure (capex) was estimated at $180-million, with a total life-of-mine capex of $231-million.
“The Viscaria project is one of a select few copper projects that are economically robust across the copper price cycle, but which require only moderate amounts of capex to put into production,” commented Read.
Avalon continued to pursue several financing avenues for development of the project, after a proposed A$25-million investment from advisory group ZJ Advisory fell through in May.
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