Lundin Mining Corp. (TSX:LUN) released a feasibility study that looks at the viability of mining Eagle East as an extension of its existing Eagle mine.
Eagle is a nickel- and copper-producing mine, and Eagle East includes high-grade nickel-copper mineralization. The feasibility study includes an updated mineral resource estimate for Eagle East, as well as a maiden mineral reserve estimate.
- The Feasibility Study demonstrates the viability of mining Eagle East as an extension of the current Eagle Mine with an incremental estimated post-tax net present value (“NPV”) of $205 million at an 8% discount rate and an estimated internal rate of return (“IRR”) of 47%. The estimated pre-production capital cost is $102 million.
- Given the robust results of the Feasibility Study, the Company has approved the full development of Eagle East subject to the successful receipt of amendments to the mining permit.
- An updated Mineral Resource estimate comprising 1.29 million tonnes classified as Indicated grading 5.2% Ni and 4.2% Cu and an additional 0.29 million tonnes of Inferred grading 1.7 % Ni and 1.4% Cu.
- The Feasibility Study indicates that these Mineral Resources can be mined with no significant changes to the current mine, ore transport, mill, and tailings infrastructure.
- Similar mining methods to Eagle are proposed and a maiden Probable Mineral Reserve of 1.54 Mt at 3.7% Ni and 3.0% Cu has been estimated. Mining of this Mineral Reserve will significantly increase nickel and copper production from 2020 and extend estimated mine life to at least 2023.
Paul Conibear, president and CEO of Lundin Mining, commented:
The results of the Feasibility Study on Eagle East confirm robust project economics and demonstrate significant incremental value to our Eagle Mine operations. The successful permitting and development of Eagle East will extend the life of the operation to the continuing benefit of our shareholders, employees, and local economy. Early decline ramp development has progressed on schedule and within budget. We continue with exploration efforts to find additional mineable mineralization.