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Los Andes Copper
Investor Insight
As demand for copper continues to rise, driven by global electrification trends, Los Andes Copper is well-placed to leverage its significant copper position in Chile, driven at the helm by a group of highly experienced technical and business leaders.
Overview
The electrification transition is already in motion and driving demand for copper, an essential metal for manufacturing emerging technologies. Copper is already found in electronics worldwide, and as clean energy technologies aim to replace fossil fuels, demand will only increase — it's projected that copper demand will likely reach 50 million metric tons by 2035. A separate analysis estimates the world copper deficit may hit more than 8.5 metric tons by 2030.
Growing copper demand has put the spotlight on Chile which hosts some of the world’s largest copper deposits. It is currently the top copper producer in the world, producing more than twice the volume of its closest competitor, Peru. The country is a stable, mining-friendly jurisdiction that has already attracted prolific mining companies.
Los Andes Copper (TSXV:LA,OTCQX:LSANF) is a Vancouver-based mining company focusing on developing its 100 percent owned, Vizcachitas copper-molybdenum porphyry project in Chile. Vizcachitas is one of the largest advanced copper projects not owned by a major mining company and has the potential to become a world-class mine. An experienced management team with decades of varied experience in the natural resources industry provides confidence in the company’s ability to reach its goals.
The company filed a positive pre-feasibility study in 2023 indicating US$2.78 billion after-tax net present value (NPV) using an 8 percent discount rate and an internal rate of return (IRR) of 24.2 percent at US$ 3.68/lb copper, US$12.90/lb molybdenum and US$21.79/oz silver, with an estimated initial capital cost of US$2.44 billion. The PFS also highlighted a construction period of 3.25 years and a payback period of 2.5 years from initial production.
The Vizcachitas project is surrounded by mining majors
Los Andes works closely with the local community to support the development of local businesses and social organizations. The company has joined the Association of Small Miners of Putaendo and has established several programs to support social organizations, local technical high schools and female entrepreneurs. Los Andes is also environmentally aware and strives to maintain an excellent ESG rating.
The company’s management team is experienced in the natural resources industry, including experts in geology, community affairs, and corporate finance.
Company Highlights
- Los Andes Copper is a Vancouver-based mining company focused on developing its world-class Vizcachitas copper project in Chile.
- To support the project, the company has received a combined US$14 million in investments from Queen’s Road Capital and US$ 20 million from Ecora Resources.
- The Vizcachitas project has tremendous blue-sky potential and is the largest advanced copper project in the Americas owned by a junior miner.
- The company released the results of its pre-feasibility study (PFS) in 2023 with a US$2.8 billion post-tax NPV8 and 24 percent IRR at US$3.68 copper.
- The company strives to maintain an excellent ESG rating and works closely to support the local community and minimize the project’s environmental impact.
- An experienced management team leads Los Andes Copper with a range of experience throughout the mining industry.
Key Project
Vizcachitas Copper Project
https://investingnews.com/stocks/tsxv-la/los-andes-copper/
The 100-percent-owned Chilean Vizcachitas copper project is one of the largest advanced copper deposits in the Americas and the largest deposit owned by a junior miner. The project is located in the Rio Rocin Valley, roughly 150 kilometers northeast of Santiago.
Project Highlights:
- Strong Existing Infrastructure: The project is accessed by a 124-kilometer paved highway, a nearby railway and shipping ports. Due to the presence of existing copper mines, smelting facilities are accessible by railway. Additionally, there are multiple large power substations near the project.Completed PFS: 2023 Pre-Feasibility Study results indicated:
- US$2.78 billion after-tax NPV using an 8 percent discount rate and an IRR of 24.2 percent at US$ 3.68/lb copper, US$12.90/lb molybdenum, and US$21.79/oz silver, with an estimated initial capital cost of US$2.44 billion.
- A construction period of 3.25 years and a payback period of 2.5 years from initial production.
- A 16-percent increase in measured and indicated resources from the preliminary economic assessment dated June 13, 2019, to 14.8 billion pounds (lbs) copper equivalent grade (CuEq).
- measured resources of 2.61 billion lbs copper, 84 million lbs molybdenum, and 11 million ounces (Moz) silver;
- indicated resources of 10.42 billion lbs of copper, 442 million lbs of molybdenum, and 43 Moz of silver;
- and increase inferred resources by 130 percent to 15.4 billion lbs CuEq (13.75 billion lbs copper, 495 million lbs molybdenum, 55 Moz silver).
- Dedicated to a strong ESG rating: The PFS focused on utilizing the latest sustainable mining methods which resulted in a 50 percent reduction in water consumption, and a 25 percent reduction in energy use and confined the project to one valley, reducing the project footprint. The company has also committed to using desalinated water, ensuring a sustainable water supply. Additionally, the company works closely with local communities to improve the knowledge and understanding of the future Vizcachitas Project and of the multiple opportunities that a sustainable mining project like Vizcachitas will bring to the community.
- Royalty Agreement with Ecora Resources: Los Andes closed a royalty agreement with Ecora Resources, a leading royalty and streaming company focused on investing in future-facing commodities. The agreement includes a $20 million cash consideration paid to Los Andes in return for royalty payments equal to 0.25 percent net smelter return royalty on minerals sold on open pit operations and 0.125 percent NSR on underground operations.
- Permit to Restart Drilling: The Second Environmental Court in Chile ruled that Los Andes has complied with all the conditions imposed on July 20, 2022 and is now authorized to restart drilling.
Management Team
Santiago Montt - CEO
With 11 years of experience in the mining sector, Santiago Montt has a law degree from the University of Chile, a J.S.D. law degree (PhD) from Yale University, and a Master's in Public Policy from Princeton University. He has worked for BHP from 2011 to 2021 in various roles: vice-president of corporate affairs for the Americas, VP of ligation (Global), VP of legal Brazil, and VP of legal copper. He is an experienced professional in the areas of stakeholder management, risk management, crisis management, project management and commercial and legal affairs
Antony Amberg - Chief Geologist
Anthony Amber is a chartered geologist with 32 years of diverse experience working in Asia, Africa, and South America. Amberg is a qualified person under NI 43-101. He has managed various exploration projects ranging from grassroots through to JORC-compliant feasibility studies. In 2001, he returned to Chile where he started a geological consulting firm specializing in project evaluation and NI 43-101 technical reports. He began his career in 1986 working with Anglo American in South Africa before moving on to work for the likes of Severin-Southern Sphere, Bema Gold, Rio Tinto and Kazakhstan Minerals Corporation.
Ignacio Melero - Director of Corporate Affairs and Sustainability
Ignacio Melero is a lawyer with a degree from Pontificia Universidad Católica de Chile with vast experience in corporate and community affairs. Before Los Andes, Ignacio was responsible for community affairs at CMPC, having managed community and stakeholder affairs for a number of its pulp and forestry divisions throughout the country. Ignacio has worked for the Government of Chile, in the Ministry General Secretariat of the Presidency. He was responsible for the inter-ministerial coordination of the ChileAtiende project, a multi-service network linking communities, regional governments and public services.
Gonzalo Saldias - Geologist Consultant
Gonzalo Saldias is a geologist with a degree from the Universidad Católica del Norte, Chile, with more than 35 years of experience working within Chile and internationally. He worked for Antofagasta Minerals from 2007 to 2015, and for Placer Dome Latin America for ten years. He also worked for Codelco as head of exploration geology for the El Salvador Division.
Harry Nijjar - Chief Financial Officer
Harry Nijjar holds a CPA CMA designation from the Chartered Professional Accountants of British Columbia and a Bachelor of Commerce from the University of British Columbia. He is a managing director of Malaspina Consultants. Nijjar has been working with public and private companies for the past 10 years in various roles. He is also currently the CFO of Darien Business Development and Clarmin Explorations.
Manuel Matta - Senior Mining and Project Consultant
Manuel Matta is a mining engineer from the University of Chile, with more than 30 years of experience in operations, planning and projects. He worked for Falconbridge and Xstrata as vice-president of projects and development where he led the expansion of the Collahuasi mine. He was also the general manager of Altonorte Smelter in Chile. Matta also worked for Barrick Gold in Chile and the Dominican Republic and was the general manager of Las Cenizas copper mines in Chile.
Red Metal Resources
Investor Insight
With assets located in a historic copper mining district in Chile that boasts high-grade mineralization and low-cost operations, Red Metal Resources represents a compelling investment opportunity and lots of potential for increasing shareholder value.
Overview
Red Metal Resources (CSE:RMES) is a Canadian-listed junior mining company specializing in copper exploration, with a particular focus on Chile’s Carrizal Alto mining district in the Atacama Region. The company’s exploration targets, mainly the Farellon and Perth projects, are well-positioned to benefit from Chile’s globally significant copper sector.
Chile is the largest producer of copper worldwide, accounting for nearly 28 percent of the global supply. Given the country’s favorable mining policies, experienced workforce, and well-established infrastructure, Red Metal Resources is well-placed to leverage these advantages as it advances its projects in this prolific region.
The company's Carrizal property comprises two key project areas: the Farellon project in the south and the Perth project in the north. The renowned Carrizal Alto mining district has a rich history of copper and gold production dating back to the 19th century. Historically, the district was one of Chile’s most productive copper regions, situated within Chile’s prolific Coastal Cordillera belt, which boasts high-grade copper mineralization and low-elevation, cost-effective operations. Red Metal Resources is working to rejuvenate Carrizal’s legacy by bringing modern exploration techniques to the region’s underexplored deposits.
Red Metal Resources’ management team brings together a blend of technical and business expertise, driving the company toward its goal of contributing to the growing global demand for copper and clean energy transition. The company also benefits from a board of directors and advisors with substantial experience in capital markets, exploration, and the Chilean mining industry. This combination of technical expertise and business acumen is critical for Red Metal Resources as it seeks to advance its projects from exploration to potential production.
Prolific mining district
The Carrizal Alto mining district, located in Chile’s Atacama Desert, is known for its mineral wealth, particularly copper, gold and cobalt. The district's mining history dates back to the early 19th century when it became one of the most important copper production regions in Chile.
One of the key advantages of the Carrizal Alto district is its favorable geographic position. The area is located at a low elevation of around 500 meters above sea level, which reduces the logistical challenges often associated with exploration in higher-altitude regions. Additionally, the district is well-connected by infrastructure, including highways and proximity to major urban centers. The property is situated just 150 kilometers south of Copiapó, 25 kilometers from the coast, and only 20 kilometers west of the Pan-American Highway. This close access to infrastructure allows for easier transportation of equipment and supplies, as well as streamlined access to labor and other resources.
The Carrizal Alto district offers a blend of historical mining data and modern exploration potential. While the region was heavily mined in the 19th and early 20th centuries, much of the area remains underexplored using modern methods. Today, the district is experiencing a revival, thanks in part to Red Metal Resources’ exploration efforts. The company’s Carrizal property spans 3,278 hectares, comprising 21 secure mining claims, and comprises two projects: Farellon and Perth.
Company Highlights
- Red Metal Resources holds 3,278 hectares across 21 secure mining claims within the Carrizal Alto mining district in the prolific Coastal Cordillera.
- The company’s Carrizal property comprises two projects - Farellon and Perth - located in an area with a rich history of copper and gold production.
- The Farellon project has over 9,000 metres of drilling, identifying 1.5 kilometres of mineralized strike length with potential for an additional 3.5 kilometres.
- In 2022, a high-grade surface sample from Farellon returned 5.77 percent copper, 1.55 percent cobalt, and 0.11 g/t gold.
- Management and insiders control approximately 35 percent of the company’s shares, aligning their interests with investors.
Key Project
Farellon Copper Project
The Farellon project is Red Metal Resources’ flagship asset, located in the southern portion of the Carrizal Alto mining district. The project is a high-grade iron-oxide-copper-gold vein deposit that has been the focus of much of the company’s exploration activities. The mineralization at Farellon is primarily hosted in quartz-calcite veins that contain chalcopyrite, bornite and chalcocite sulphide mineralization. These veins range from 3 to 6 meters in width, with a halo of lower-grade mineralization extending 15 to 20 meters around the veins.
Farellon is located adjacent to the historic Carrizal Alto mine, one of Chile’s most prolific copper mines during the 19th century. The mineralized veins on the Farellon property are believed to be part of the same geological structure that hosted the mineralization at the Carrizal Alto mine. Historical mining in the area provides valuable insights into the region’s geology, which Red Metal Resources is leveraging to guide its exploration strategy.
To date, the company has completed over 9,000 meters of drilling at Farellon, identifying a mineralized strike length of approximately 1.5 kilometers. The mineralization remains open along strike for an additional 3.5 kilometers, and at depth, indicating significant exploration upside. In 2022, the company completed a 2,010-meter diamond drilling program that extended the known mineralization at depth and identified a parallel structure, the Gorda Vein, which adds further exploration potential.
Recent surface geochemistry work has also highlighted several new targets for follow-up sampling and drilling. One high-grade sample, taken 2 kilometers north of the Farellon drilling, returned values of 5.77 percent copper, 1.55 percent cobalt, and 0.11 grams per ton (g/t) gold, further underscoring the potential for additional high-grade mineralization on the property. These exploration results position Farellon as a highly prospective project with the potential to develop into a significant copper-gold-cobalt resource.Perth Project
The Perth project, located in the northern portion of the Carrizal Alto district, is Red Metal Resources’ second major exploration asset. The project holds considerable potential for copper-gold-cobalt mineralization. Perth is characterized by fault-related quartz veins that have been mapped and sampled across the property. Historical prospecting and mapping programs have identified 12 veins, with an average thickness of 2 meters and some zones reaching up to 6 meters in width.
Exploration at Perth has yielded promising results, with 48 surface samples returning gold values greater than 1 g/t, 46 samples returning copper grades exceeding 1 percent, and 19 samples showing cobalt values above 0.05 percent. These early-stage exploration results are encouraging and suggest that the Perth project has the potential to host significant copper-gold-cobalt mineralization.
Red Metal Resources plans to conduct additional exploration at Perth to better understand the extent of the mineralization and to prioritize drill targets for future campaigns. While the project is at an earlier stage compared to Farellon, it offers an important opportunity for the company to expand its resource base within the Carrizal Alto District.Management Team
Caitlin Jeffs - President and CEO
Caitlin Jeffs is a founding partner of Fladgate Exploration Consulting in Thunder Bay, Ontario, the largest, full service, mineral exploration consulting firm in Northwestern Ontario. She has over 20 years of mineral exploration experience in gold and base metal exploration with junior and major resource companies, including Placer Dome and Goldcorp. Jeffs is also a director of Kesselrun Resources and TomaGold.
John Da Costa - CFO
John Da Costa has 30 years of accounting experience managing and reporting for Canadian public companies, and 10 years with US public companies. He worked with a Canadian public company operating in Chile in the late 1990s and has experience with Chilean subsidiaries. He is the founder and president of Da Costa Management, providing management and accounting services to both public and private companies in the US and Canada since 2003.
Brian Gusko - VP Finance
Brian Gusko has an MBA from the University of Calgary and attended the European Summer School of Advanced Management. Gusko has over 15 years’ experience in capital markets and has helped raise over $75 million for various enterprises. He has served on the board and as chief financial officer of various private and public companies. Gusko has assisted with the interlisting of more than 10 companies on the Frankfurt Stock Exchange and has helped numerous companies access German capital markets. He has worked as chief financial officer at several private and public companies. The last company he helped take public on the CSE had a market capitalization of over $200 million at the time of listing.
Michael Thompson - VP Exploration and Director
Michael Thompson received his Honours B.Sc. in Geology from the University of Toronto in 1997, and has since worked for several junior and major companies in both gold and base metal exploration, including Teck Cominco, Tri Origin Exploration, Placer Dome CLA, and Goldcorp. He specializes in structural interpretation of gold deposits as well as management of large exploration programs. He is a founding partner and 33 percent owner of Fladgate Exploration Consulting in Thunder Bay, Ontario.
Marian Myers - Project Manager and Director
Marian Myers has an M.Sc (Geology) from the University of the Witwatersrand, South Africa, and has 35 years’ experience working for a wide array of major and junior mining companies including Gold Fields, Anglo American, AngloGold, Balmoral Resources and Cardero Resource. Myer’s breadth of international experience has taken her from her home town near Johannesburg, South Africa to work on projects in Ghana, Zimbabwe, Australia, Alaska, Peru, Chile and now, Canada, where she resides in Vancouver. She specializes in the GIS integration of geochemical, geophysical and geological information, including historical data sets with expertise in QA/QC procedures, field data collection supervision, and assessment and technical report development.
Cody McFarlane - Director
Based in Santiago, Chile, Cody McFarlane is managing partner of Axiom Legal, an international and multidisciplinary law firm specializing in cross border transactions between Australia, Canada and Latin America. McFarlane brings extensive experience in the mining and regulatory environment in Chile.
True North Copper
Overview
True North Copper (ASX:TNC) is entering a transformative phase on our path to become Australia’s next copper producer. Mining activities have commenced at our Cloncurry Copper Project – a low-cost, low-risk, fully funded and permitted project.
The company’s next mine development is the high-grade Vero resource at the Mt Oxide Project. True North Copper is committed to developing and strengthening our understanding of this phenomenally mineralised project, which boasts an updated copper-silver mineral resource estimate of 15.03 Mt at 1.46 percent copper and 10.59 g/t silver for a contained 220 kt copper and 5.13 Moz silver.
Copper demand is rising in a global market of diminishing supply. The global surge in artificial intelligence, electric vehicles, decarbonisation initiatives, and broader macro trends is intensifying the demand for copper.Company Highlights
True North Copper is preparing to become Australia’s next copper producer.
True North Copper's two principal assets are located in northwest Queensland, Australia – a Tier 1 mining jurisdiction:
- Cloncurry Copper Project (CCP) - IOCG and ISCG copper-gold deposits proposed for open pit mining operations, with extensive surrounding exploration tenure. Mining activities have commenced at the Wallace North deposit, part of CCP.
- Mt Oxide Project (Mt Oxide) – IOCG high-grade, globally significant, copper-cobalt-silver deposit subject to re-optimisation studies, and exploration in surrounding tenure.
Cloncurry Copper Project (CCP)
- Mining restart study confirms positive CCP project economics - AU$367 million with free cash flow of AU$111 million, and a pre-tax NPV10 of AU$88 million over a 4.6 year mine life, at US$8,500 per ton copper price and US$1,850 per ounce gold price (0.7 AU$:USD exchange rate).
- Wallace North Mine preparation and mobilisation. Wallace North is scheduled as the first open pit (one of four – Wallace North, Great Australia Mine [GAM], Taipan and Orphan Shear) to be mined as part of the mining restart at the CCP.
- Mining ramp-up will initially build ore stockpiles, with mining expected to start Q4 FY24 (AUS). Oxide copper-gold ore will be transported by road train to the Cloncurry Operations heap leach. Sulphide ore will be transported to a nearby concentrator for toll treatment under TNC's toll-milling agreement with Glencore.
- CCP’s total reserves increased. TNC’s Cloncurry Copper Project (CCP) total reserves currently include 4.7Mt probable ore reserves grading 0.80 percent copper and 0.13g/t gold, containing 37.5 kiloton of copper and 20.0koz of gold.
Figure: Cloncurry copper project and Cloncurry operations hub
Mt Oxide Project
- Highly prospective and underexplored. Phenomenally mineralised system.
- Exploration results from True North Copper's maiden diamond drill program across Mt Oxide’s Vero Resource not only returned globally significant grades, but also showcased the expanding nature of the Vero high-grade ore body including:
- 66.50 metres @ 4.95 percent copper, 32.7g/t silver and 685 ppm cobalt from 234.00 metres
- [inc.] 20.60 metres @ 10.51 percent copper, 63 g/t silver and 1,149 ppm cobalt from
234.60 metres and - [inc.] 8.55 metres @ 6.03 percent copper, 51.6 g/t silver and 98 ppm cobalt from
290.15 metres
- [inc.] 20.60 metres @ 10.51 percent copper, 63 g/t silver and 1,149 ppm cobalt from
- 66.50 metres @ 4.95 percent copper, 32.7g/t silver and 685 ppm cobalt from 234.00 metres
- Updated Copper-Silver Mineral Resource Estimate. The updated MRE for the Vero deposit contains 15.03 Mt at 1.46 percent copper and 10.59 g/t silver for a contained 220 kt copper and 5.13 Moz silver. Vero’s updated resource delivers a 20 percent increase in silver ounces, demonstrating the potential to produce a significant silver co-product in addition to copper.
- Multiple exciting future exploration programs and high-priority potential targets along the 10 kilometre-long mineralised trend that hosts Vero.
- Strongly Anomalous Copper and Pathfinder Elements. A systematic rock chip sampling campaign at the Aquila and Ivena North prospects at the Mt Oxide project identified broad zones of copper mineralisation with samples from Aquila showing multiple gossanous breccia structures up to 30 metres wide. Sampling from Ivena North has identified copper, cobalt and arsenic trends within two geochemically anomalous zones from multiple gossanous breccia structures that are up to 25 metres wide.
Figure: Cross-section of MOXD217 (10 metres clipping window) showing the location of geological and grade composites as well as the updated interpretation of copper grade domains based on the results from MOXD217
Funding and Strategic Partnerships
- AU$42 million (US$28 million) USD-denominated senior secured loan facility (loan facility) with Nebari Natural Resources Credit Fund II LP (Nebari)1. The Loan Facility is provided in two tranches. Drawdown of Tranche 1 – US$18 million (approximately AU$25.5 million) on 9 February 2024.
- Binding offtake and toll-milling agreements with Glencore International AG (Glencore) for 100 percent of copper concentrate from TNC’s CCP and toll-milling services of up to 1Mt of ore per year for the CCP’s Life of Mine (LoM).
Figure: Visual representation of Vero Resource within surrounding Mt Isa Inlier.
TNC Exploration Program
- Exploration strategy targeting transformative discoveries across TNC’s more than 850 sq km of tenure package within the Mt Isa Inlier.
- Significant potential for transformative discoveries of copper-gold cobalt-silver in three districts.
- Numerous high-quality copper-gold-cobalt-silver targets located with mineralised structural corridors within the eastern & western fold belts such as:
- Cloncurry Fault Corridor 🡪 Host to the GAM and Mt Norma Resources
- Ernest Henry Corridor 🡪 Ernest Henry, E1 Camp and Monakoff
- Mt Gordon Corridor 🡪 Capricorn Copper and Vero
- Mt Roseby Corridor 🡪 Little Eva and Blackard.
- 12.55 Mt @ 0.82 percent copper (indicated and inferred resources) and multiple prospects located within a 30-kilometre radius of the company's CCP represent near-term production opportunities.
- Recent JV over highly prospective tenements with CMG deal increases TNC’s land position at the core of its CCP.
- TNC awarded the Queensland Government Collaborative Exploration Initiative (CEI) Grant. The CEI grant has been used towards delivery of leading edge MIMDAS induced polarisation, resistivity and magnetotellurics geophysical surveys at the Mt Oxide. The exploration has targeted massive and disseminated sulphide mineralisation and delivered an improved understanding of the large-scale structural architecture that controls mineralisation throughout the Mt Oxide exploration leases.
Figure: Summary of exploration and development pipeline across all TNC projects.
Projects
Cloncurry Copper Project
Our Cloncurry copper project (CCP) hosts iron oxide copper-gold (IOCG) and iron-sulphide-copper-gold (ISCG) deposits with extensive surrounding exploration tenure. It is built on a strong economic basis and low-risk cost structure.
The CCP currently incorporates two reserves where mining will commence including – the Wallace North maiden resource and the Great Australia mine reserve (GAM):
- GAM includes GAM, Orphan Shear and Taipan deposits) totalling 4.7Mt grading 0.80 percent copper and 0.13g/t gold containing 37.5kt of copper and 20 koz of gold – upgrade to be announced mid-2024.
- Wallace North ore reserve totals 0.7Mt (probable) grading 1.01 percent copper and 0.46g/t gold for 6.8kt copper and 10 koz gold.
TNC’s CCP expansion is ongoing with exploration progressing and advanced projects in strategic locations surrounding the existing CCP operation, promising long-term growth prospects.
Our strategic partnerships, including a binding offtake and toll-milling agreements with Glencore International AG, supported by debt funding secured with Nebari, underscore our operational readiness and position TNC to capitalise on an extremely favourable copper market.
Mining operations will kick off at the Wallace North open cut pit, targeting higher-grade ores (~1 percent copper) from surface mining. Ore will undergo primary crushing at the Cloncurry operations hub and the toll treatment facility, located within a 40-kilometre radius, with a predominant focus on sulphide ores.
All necessary permits for mining are secured across the CCP, bolstered by an established environmental monitoring network with a robust historical database.
TNC's operational strategy involves a phased approach to mine development, with mining activities commencing in 2024 and a planned ramp-up of production throughout 2025.
Cloncurry Operations Hub
The Cloncurry operations hub is strategically located to the CCP’s four open pit deposits including: Great Australia, Orphan Shear, Taipan and Wallace North.
The COH is 2 kilometres from the township of Cloncurry and provides essential infrastructure, technical systems and support to all of TNC’s project operations. An active oxide heap leach and solvent extraction (SX) processing plant, mine buildings, site administration facilities, workshops, open pit mine facilities, onsite explosive magazines, site storage, water management systems and existing site power supply are located at the COH.
Cloncurry Copper Project – Project Economics
- Mining 4.8Mt of ore over an initial 4.6-year mine life, at a low strip ratio of 4.2, delivering 35kt copper and 29 koz gold contained metal (based on existing JORC reserves)
- Anticipated mine revenue of AU$367 million with free cash flow of AU$111 million, and a pre-tax NPV10 of AU$88 million, demonstrating strong operating economics at US$8,500/t copper price and US$1,850/oz gold price (0.7 AU$:USD exchange rate).
- Payback expected within six months post mining restart, driven by favourable commodity prices and low all-in sustaining cost (AISC) of US$2.65/lb copper.
- Low up front capex of AU$1.5 million leverages existing infrastructure, while peak operating expenditure is estimated at AU$2.2 million.
- Sulphide and oxide ore production – two copper products. copper sulphide (LoM approx. 90 percent) + copper sulphate (LoM approx. 10 percent).
- Mineral concentrate grade 22-26 percent copper (with gold/silver credits).
- Sulphide Ores more than88 percent expected recovery.
- Transitional Ores more than 77 percent expected recovery.
- Very low deleterious elements in mineral concentrate.
Cloncurry Copper Project – Exploration
- CCP expansion and exploration focused on rapid copper-gold-ore source growth.
- With more than 80 prospects located within a 30-kilometre radius of the CCP, TNC is focused on expansion and the exploration potential for additional copper-gold-cobalt-silver mineralisation to be brought into the production fold, including large-scale transformative discoveries.
- Our successful 2023 Exploration Program identified the following targets:
- Cloncurry Copper Project - eight new drill targets at Greater Australian and Copperhead.
- Salebury and Rocklands South - Compelling untested geophysical anomalies in historic data.
- Mt Norma - untested surface anomalies and down plunge resource extension targets on mining lease within 30 kilometres of the Cloncurry operations hub.
- Wynberg, Notlor, Marimo Trend and Tanbah limited historic exploration significant copper-gold in surface sampling and drilling, limited testing.
Figure: High priority exploration targets at the CCP
Mt Oxide Project
The Mt Oxide project hosts the Vero resource of 15.98 Mt @ 1.43 percent copper (measured, indicated and inferred) a Mt Isa style sediment-hosted copper-silver-cobalt system. Analogues include Capricorn copper and Mt Isa copper.
The Vero resource at our Mt Oxide project is our next mine. We are focused on understanding this phenomenally mineralised system.
Mt Oxide’s Vero Resource 2023 exploration program returned outstanding and globally significant grades. The results of our 2023 maiden drilling program at the Vero resource showcased the expanding nature of the Vero high-grade ore body.
Vero Resource maiden drilling program
2023 Vero resource drilling highlights included (* = Estimated True Width):
MOXD217 returned phenomenal results that placed the drill hole in the top globally ranked copper drill holes of 2023 including :
- 66.50 metres (48.00 metres*) @ 4.95 percent copper, 32.7 g/t silver and 685 ppm cobaltfrom 234 metres.
- 11 metres (8.19 metres*) @ 3.06 percent copper, 34.2 g/t silver and 682 ppm cobalt from 357.50 metres.
- 8.55 metres (8.55 metres*) @ 6.16 percent copper, 45.9 g/t silver and 140 ppm cobalt from 172.50 metres.
MOXD221 intercepted a wide interval of high-grade shallow dipping mineralisation as well as a second deeper intercept, providing indications of rapidly increasing grade and widths of mineralisation to the south including:
- 42.10 metres (41 metres*) @ 1.66 percent copper, 13.5 g/t silver and 1,083 ppm cobalt from 154.90 metres.
- [including] 4 metres (2.24 metres*) @ 7.65 percent copper, 57.3 g/t silver and 1,164 ppm cobalt from 191.20 metres.
MOXD226A returned three key zones of strong mineralisation including a broad interval of 69.95 metres and further intervals of up to 11.19 percent copper.
Highlights include:
- 69.95 metres (42.85 metres*) @ 1.91percent copper, 17.7g/t silver and 675 ppm cobalt from 224.55 metres
- [including] 9.65 metres (5.89 metres*) @ 2.74 percent copper, 24.1g/t silver and 993 ppm cobalt from 239.50 metres
- [including] 18.15 metres (11.07 metres*) @ 3.23 percent copper, 26.8g/t silver and 585 ppm cobalt from 276.35 metres
- 16.75 metres (16.75 metres*) @ 5.30 percent copper, 44- g/t silver and 120 ppm cobalt from 165.25 metres
- [including] 4.65 metres (4.65 metres*) @ 11.19 percent copper, 93.9g/t silver and 136 ppm cobalt from 172.55 metres
Figure: Location of geological and grade composites as well as the updated interpretation of copper grade domains based on the results from MOXD226A
Mt Oxide Discovery Strategy
TNC is committed to unlocking Mt Oxide’s underexplored targets.
- Mt Oxide lies adjacent to a large crustal scale structure - the Mt Gordon Fault Zone. Splays off this structure (Dorman Fault) host Vero.
- Mt Oxide has evidence of large-scale fluid flow, big mineral system potential.
- Copper-silver-cobalt mineralisation interpreted to have been formed near surface and upper parts are preserved.
- Excellent depth potential of mineralisation in the Mt Oxide project.
- Limited systematic modern exploration outside of the Vero resource.
- Significant opportunity to apply leading-edge mineral exploration to build a larger copper inventory in a well-endowed mineral system.
- More than 10 kilometres trend along Dorman fault zone of intermittently outcropping gossanous / silica breccias, virtually no drilling, surface sampling or effective geophysics.
- Multiple untested targets with significant alteration-mineralisation footprints.
- No application of tried and tested geophysics or systematic surface rock chip geochemistry and mapping.
- Low cost highly effective exploration techniques to filter and prioritise drill targets.
Multiple exciting future exploration programs and high-priority potential targets along 10-kilometre long mineralised trend that hosts Vero including:
- Aquila & Mt Gordon
- Ivena North
- Camp Gossans
- Cave Creek
- Big Oxide
Figure: Multiple exciting future exploration programs and high-priority potential targets along the 10-kilometre long mineralised trend that hosts Vero resource’s Mt Oxide project.
A systematic rock chip sampling campaign at the Aquila and Ivena North prospects indicated strongly anomalous copper and pathfinder elements.
- Sampling at Aquila highlighted six zones of anomalous copper, cobalt and arsenic associated with multiple gossanous breccia structures up to 30 metres wide.
- Aquila B Trend: +180 metres long and +30 metres wide copper +/- cobalt-arsenic-silver within a 440 metres long fault breccia with visible copper oxide mineralisation. The trend includes rock chip channels returning 3.6 metres @ 0.49 percent copper with a peak assay of 0.94 percent copper.
- Aquila A Trend: +20 metres long and up to 12 metres wide copper-arsenic-antimony anomalous zone within +210 metres strike of hematite altered hydrothermal breccias, returning up to 0.05 percent copper and 12.7g/t silver and anomalous pathfinders.
- Aquila D Trend: +100 metres long and up to 4 metres wide copper-cobalt trend associated with a historical prospecting pit with strong copper oxide mineralisation, and a peak assay of 0.87 percent copper.
- At Ivena North, sampling has identified copper, cobalt & arsenic trends within two geochemically anomalous zones from multiple gossanous breccia structures that are up to 25 metres wide.
- Ivena North A Trend – +130 metres long and up to 15 metres wide copper-cobalt-aresenic trend within a +580 metres strike of hydrothermal breccia and gossans that returned assays up to 1.38 percent copper and anomalous arsenic +/- silver-antimony-bismuth-molybdenum.
Management Team
Bevan Jones - Managing Director
Bevan Jones is a seasoned operations officer offering nearly 30 years of experience in mine management across a diverse range of commodities and has a proven track record in directing business improvement initiatives and operational transformation. Jones’ previous roles include chief operating officer at Karora Resources (TSX:KRR), as well as general manager of Gold Fields Limited’s (JSE:GFI) St Ives Gold Mine in WA, where he executed transformative growth strategies and delivered exceptional operational results. Most recently, Jones was the managing director at Brisbane-based Extra Mining Solutions, where he played a leading role in establishing the company focusing on business transformation and operational excellence. Jones gained international operational experience as chief operating officer of BCM Group International in West Africa, general manager of the Wetar Copper Mine in Indonesia and general manager of the Hidden Valley Mine in Papua New Guinea, as well as mining manager of Barrick Gold’s Lumwana Copper Mine in Zambia.