PERTH (miningweekly.com) – ASX-listed Metals X on Wednesday revealed the reset plan for its Nifty copper mine, in Western Australia, where it is targeting a production rate of around 28 000 t/y from the Phase 1 plan, by the March 2020 quarter.

Metals X told shareholders that the Phase 1 plan, which is already under way, will focus on mine planning, development into new production areas and underground infrastructure improvements, targeting a throughput rate of two-million tonnes a year.

All-in sustaining costs for Phase 1 were estimated at between $6 800/t and $7 300/t at the two-million tonne a year rates.

Phase 2 of the reset plan will build off Phase 1, and will target throughput rates of 2.5-million tonnes a year by the March quarter of 2021, with copper-in-concentrate production of around 35 000 t/y, and all-in sustaining costs of between A$6 400/t and A$6 900/t.

“Nifty was purchased by Metals X to take advantage of the installed infrastructure, the substantial copper endowment of the mine and the significant geological upside that was recognised at the time,” said Metals X MD Damien Marantelli.

“The key fundamentals driving that decision have not changed. Nifty has the processing capacity to achieve the targeted production rates, a life-of-mine offtake partner, a substantial existing resource base and a strong exploration upside.

“Unfortunately, performance at Nifty has suffered from a number of legacy issues as well as a lack of planning and focus, poor decision making and poor execution. The Metals X board acknowledges this. We now have the right team and the right plan in place to unlock Nifty’s considerable value.”

The three-year reset plan is expected to cost some A$162.5-million, of which A$27-million would be project capital. Metals X said the reset plan will be funded through a mix of cash flow and debt facilities. The company has an undrawn, uncommitted borrowing base debt facility of $20-million and is currently in discussions with financiers to ensure that sufficient minimum liquidity is in place to adequately fund the reset plan.

As part of the reset plan, Metals X will also undertake drilling to increase the current resource estimate at Nifty, with the company having identified key areas outside of the current ore reserve envelope that could provide significant upside and the potential to extend the mine life.