Kiruna
Based on the progress from ongoing core drillings as well as the overall momentum in the copper market, Copperstone Resources AB (publ) today has revised and enlarged the total resource and production ambition for the reopening of the Viscaria copper mine in Kiruna,
“It is very gratifying that we gradually are making progress in the restart of Viscaria mine and that the team efforts and the promising market conditions have enabled a better and more sizeable project than we previously estimated. Moreover, our growing team of experts constantly finds new solutions that gives a more optimized and sustainable production", comments CEO
The Copperstone Board´s overall contemplation of an enlarged Viscaria operation is based on solid indications of increased mineral resources in the ongoing exploration activities as well as the favourable copper market, with prospects of long-term imbalance of supply and demand. A pre-requisite for a larger mine in operation is continued exploration success, and the company’s ability to convert inferred and indicated mineral resources into higher categories and in that way secure the life-of-mine.
Revised and enlarged mining operation
- Recent drillings at Viscaria have given encouraging results from the B-zone south deposit, where only limited previously code-compliant mineral resources have been declared to date. Consequently, Copperstone will also include these resources in the next mineral resource inventory update. Copperstone has revised its geological model and envision Viscaria Copper Project´s exploration target to reach 89 - 109 Mton of copper-bearing rock in the mid-term (3-5 years), corresponding to 1,000,000 – 1,200,000 tons of copper at 1.11 – 1.13 % copper (currently 727,000 ton)1. See attached geological summary.
- The mining model is based on a combined open pit and underground mining scenario with a life-of-mine of minimum 10 years.2
- The new scenario initially includes an increased yearly milled run-rate production and plant equipment and machinery capacity of 3 Mton, dimensioned for a future 5 Mton. The enlarged project scenario is estimated to increase the total capital requirement to 3,000-4,000 MSEK. The company also investigates the potential to include the tailings- and waste-rock, especially during ramp-up and in the event of an extension to 5 Mton. The additional CapEx to take the plant from 3 Mton to 5 Mton is not negligible yet considered as financially defendable.
- The total production of copper in the new model is estimated to 30,000 ton per year.
- The projected modelling cash costs is estimated to
3,900 USD /ton (including by-products) and an updated assumption for the copper price at9,000 USD /ton. - The annual net profit, after ramp-up, over the life-of-mine is assessed to be approx. 850 MSEK.3 The company´s previous announced assessment regarding annual net profit after ramp-up amounted to approx. 400 MSEK and Capex of 1,500 MSEK, cash costs of
3,600 USD /ton and a copper price of7,000 USD /ton.4 - The submitting of the application for the environmental permit to the Land and Environment Court has now been specified to the first quarter of 2022.
For more information, please see attached geological summary on the Viscaria copper project as well as an updated corporate presentation, please refer to Copperstone´s webpage: www.copperstone.se.
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1 See further attached geological summary on the Viscaria copper project and the Company’s scoping study from 2015/16.
2 See further the Company’s scoping study from 2015/16.
3 Based on consistent assumptions and specifically revised assumptions, see further the press release of
4 Based on consistent assumptions and specifically revised assumptions, see further the press release of
Attachment
- PR Geo summary Eng final
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