PERTH (miningweekly.com) – A scoping study into ASX-listed Caravel Minerals’ copper project, in Western Australia, has shown that the project could generate revenues of A$10.6-billion and free cash flow of A$3.1-billion over a 23-year mine life.
The scoping study estimated that a capital investment of A$481-million would be required to develop an initial 16-million-tonne-a-year operation, which would ramp up to 30-million tonnes a year from year six.
The Caravel copper project is expected to produce around 45 000 t/y of copper in the first five years of operation, ramping up to 65 000 t/y following the expansion.
“The results of the 2019 scoping study confirm the very real potential to establish a new copper mining and processing operation to produce and export copper concentrate to global markets over 23 years and potentially longer,” said Caravel MD Steve Abbott.
“The scoping study highlights the potential for developing a robust standalone mining and processing operation capable of generating strong margins and excellent financial returns.”
The project is estimated to have a pretax net present value of A$10.5-billion and an internal rate of return of 20% post tax, with capital costs expected to be repaid within the first four years of production.
C1 cash costs have been estimated at $1.45/lb, after by-product credits, placing Caravel in the second quartile of copper producers for the first five years of the operation.
Based on the outcomes of the scoping study, Caravel will now proceed with more advanced feasibility studies.