Los Andes Chile copper project has a $1.8bn NPV
TSX-V-listed Los Andes Copper is advancing its Vizchachitas project, in central Chile, to prefeasibility study stage, after a preliminary economic assessment (PEA) confirmed the copper/molybdenum deposit’s economic viability.
The project considers an openpit mine and concentrator plant that produces a copper molybdenum concentrate.
The PEA evaluated three cases and suggested the mill throughput of 110 000 t/d to advance into PFS stage. This case delivered an after-tax net present value (NPV) of $1.8-billion, an internal rate of return (IRR) of 20.77% and a payback period of 3.4 years.
Los Andes executive chairperson Fernando Porcile said the company believed that Vizchachitas would be Chile’s next major copper mine.
“The strong economic viability of the project . . . indicates that not only is it financially robust, but it also has the ability to generate positive cash flows in a short period of time. Additionally, the C1 cash costs of $1.36/lb for the first eight years of operation put us well within the second quartile of copper producers and supports a resilient cash flow generation through copper price cycles,” said Procile.
Vizchachitas had a measured and indicated resource of 1.284-billion tonnes at a copper equivalent grade of 0.45%, and production of 110 000 t/d would only see half of the resource depleted by the end of the mine life.
“Being located in Chile presents a huge advantage to Los Andes, with the country being identified as the most attractive jurisdiction in South America for mining investment. The relatively low elevation and regional infrastructure, including road and nearby power and rail connections, enhance the project viability.”
Los Andes would aim to complete the PFS for Vizchachitas in the fourth quarter.
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