Copper developer Redbank Copper Limited (ASX: RCP) released today its 4 month comprehensive Mine Study for the development of the Redbank high grade copper project in the Northern Territory.
The Study confirms strong economic viability for a copper cathode and concentrate project and includes a base case model for an open cut copper mine with a life of ten years, including production from both oxide and sulphide ores.
Key points:
• Average cash cost US$1.21/pound
• Revenue AUD$470m
• Cash flow AUD$166m
• Startup capital AUD$18.2m with total capital AUD$62.5m
• Study assumes 10 year mine life based on current resources and assumed further exploration success and expansion of resource base
• Total production: 21,100 tonnes copper cathodes (LME grade 99.99%) 62,900 tonnes copper in concentrate
• NPV of cash flows is AUD$53.0m (6.6c/share)
Redbank Managing Director Bruce Morrin said the study confirmed the positive economics of the project, and identified optimal methods for development.
“The release of the Mine Study is a major step forward in the re-development of Redbank as a high grade copper producer,” Mr Morrin said.
“We have established resources and infrastructure in place at Redbank, and a substantial exploration program underway to lift the resource base.”
“The Mine Study shows that with relatively small capital outlay we can return the Redbank project into production. Our focus now is on continuing the exploration program, and moving the project forward to be in a position to potentially commence production mid next year,” Mr Morrin said.
Initial oxide ore processing is proposed to commence in 2010, at a throughput rate of 150,000tpa, producing cathode from a small SX-EW plant. Sulphide production is proposed to commence in 2012 from the refurbished onsite concentrator, at an initial rate of 300,000tpa increasing to 500,000tpa producing a 27% copper concentrate.
The Study confirms strong economic viability for a copper cathode and concentrate project and includes a base case model for an open cut copper mine with a life of ten years, including production from both oxide and sulphide ores.
Key points:
• Average cash cost US$1.21/pound
• Revenue AUD$470m
• Cash flow AUD$166m
• Startup capital AUD$18.2m with total capital AUD$62.5m
• Study assumes 10 year mine life based on current resources and assumed further exploration success and expansion of resource base
• Total production: 21,100 tonnes copper cathodes (LME grade 99.99%) 62,900 tonnes copper in concentrate
• NPV of cash flows is AUD$53.0m (6.6c/share)
Redbank Managing Director Bruce Morrin said the study confirmed the positive economics of the project, and identified optimal methods for development.
“The release of the Mine Study is a major step forward in the re-development of Redbank as a high grade copper producer,” Mr Morrin said.
“We have established resources and infrastructure in place at Redbank, and a substantial exploration program underway to lift the resource base.”
“The Mine Study shows that with relatively small capital outlay we can return the Redbank project into production. Our focus now is on continuing the exploration program, and moving the project forward to be in a position to potentially commence production mid next year,” Mr Morrin said.
Initial oxide ore processing is proposed to commence in 2010, at a throughput rate of 150,000tpa, producing cathode from a small SX-EW plant. Sulphide production is proposed to commence in 2012 from the refurbished onsite concentrator, at an initial rate of 300,000tpa increasing to 500,000tpa producing a 27% copper concentrate.
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