London- and Toronto-listed SolGold has announced the results of a new prefeasibility study (PFS) for the Cascabel project, in Ecuador, which supports a phased block cave mine development that substantially reduced the initial capital expenditure (capex) required.
The PFS puts an initial capex price tag of $1.55-billion on Cascabel, which the company noted was a $1-billion saving on previous estimates.
The initial block cave will achieve a production rate of 12-million tonnes a year, extracting high-grade ore of about 1.45% copper-equivalent for the first ten years of production.
SolGold points out that the extraction of high-grade material will not sterilise the surrounding lower-grade ore.
In the second phase, the mining operations will be expanded by an additional 12-million tonnes a year, increasing the yearly production rate to 24-million tonnes in year six.
Over an initial 28-year mine life, Cascabel will produce 4.3-million tonnes of copper equivalent, comprising 2.9-million tonnes of copper, 6.9-million ounces of gold and 18.4-million ounces of silver.
At peak production, the mine will yield 216 000 t/y of copper, 734 000 oz/y of gold and 1.16-million ounces of silver a year.
"Cascabel is not just a mining project; it's a promise of responsible mining, lasting value for all stakeholders and a sustainable legacy for the planet,” said SolGold CEO and president Scott Caldwell.
“With reduced capital needs and lower risk compared to previous approaches, together with our ongoing commitment to sustainability and responsible mining, Cascabel is more than copper and gold; it's a story of innovation, collaboration and a vision for a greener and more prosperous tomorrow for the people of Ecuador.”