Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed 29Metals has unveiled its recovery plans at its Capricorn copper operation, in Queensland, where restart activities are expected to start in the September quarter of this year.
The company in early March halted production and all non-essential activity at the copper operation, as road access was lost and heavy rainfall resulted in a substantial increase in the volume of water held on site.
The operation has remained suspended owing to water ingress into the Esperanza South mine, flood damage to existing water treatment facilities, workshop and warehouse, and elevated water levels within the on-site water storage structures.
The company is evaluating a number of available water management strategies as part of its restart initiatives, and will continue to engage with the necessary regulators on planned water reduction strategies and the required approvals.
29Metals MD and CEO Peter Albert told shareholders on Tuesday that Phase 1 of the restart would focus on the Mammoth and Greenstone mines, which are operationally ready. Mining operations are earmarked to restart from the September quarter of this year, and ore from the mine would be fed to the plant on a campaign basis, matching achievable mining rates through the restart period.
Phase 2 of the restart strategy will focus on the Esperanza South operation, with dewatering and rehabilitation efforts at the mine to be undertaken during Phase 1 to enable full recovery operations during Phase 2.
29Metals is expecting recovery costs to reach between A$30-million and A$38-million between the September quarter and the end of the year, with a further A$17-million to A$20-million of recovery costs planned for the mid first half of 2024, the company told shareholders.
In terms of production outlook, 29Metals is targeting between 4 000 t to 6 000 t of copper production and between 20 000 oz and 30 000 oz of silver production from Capricorn between the September quarter and the end of 2023, with production reaching between 3 000 t and 4 000 t of copper and between 8 000 oz and 12 000 oz of silver to the midpoint of the first half of 2024.
The company is evaluating opportunities to reduce the total recovery plan costs.