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Caravel warns of higher cost copper

5th May 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Junior Caravel Minerals has flagged a A$200-million increase in the capital cost estimate for the Stage 1 development of its Caravel copper project, in Western Australia.

Lead engineer Ausenco has provided Caravel with capital cost estimates for the project’s Stage 1 process plant and infrastructure as part of the prefeasibility study (PFS), and has increased the capital cost estimate from A$500-million to around A$700-million, or by around 40%.

The cost increases were attributed to a 20%, or A$100-million, increase for project scope changes relating to increased throughput of 13.9-million tonnes a year, power, water tailings storage and road, and a further 20%, or A$100-million, increase owing to increased labour, materials, freight and energy costs.

Initial mining equipment costs have been estimated at A$140-million for an electrified and autonomous mining fleet.

The PFS is based on a 13.9-million-tonne-a-year operation, delivering 40 000 t/y of copper in Stage 1, expanding to 61 000 t/y of copper in Stage 2. This was compared with the initial studies which considered a 12-million-tonne-a-year operation, delivering 35 000 t/y of copper during Stage 1.

Caravel told shareholders on Thursday that further studies would investigate the benefit of commencing at the higher throughput rate of 27.8-million tonnes a year from the start of the project, rather than undertaking a staged approach.

Meanwhile, further reviews and optimisation of capital estimates were continuing ahead of the final PFS, which is due later this month.

Edited by Creamer Media Reporter

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