AQM Copper Releases PFS Results For Zafranal Project

AQM Copper (TSXV:AQM) released results of a preliminary feasibility study for its Zafranal project in Peru this week. The project is owned through a joint venture with AQM, Teck Resources and Mitsubishi Materials.
As quoted in the press release, highlights of results included:

• The reported mineral reserve totals 401 million tonnes (“Mt”) grading 0.40 % total copper (“Cu”) and 0.07 g/t gold (“Au”), and the mine-concentrator as designed is expected to produce 3.1 billion pounds of copper and 484,000 ounces of gold over the 19-year life of the operation.
• Initial capital cost is US$ 1.16 billion and the base case after-tax valuation yields an expected net cash flow of US$ 1.6 billion with a net present value (“NPV”) of US$ 496 million at an 8 % discount rate.
• After-tax internal rate of return (“IRR”) is 15.9 % and the Project has a 5.1-year payback period from the start of operations.
• Production averages 120,000 tonnes per annum (“tpa”) of copper in concentrate over the first 5-year period and 75,000 tpa over the life of the operations.
• A total of 4.4 million dry metric tons (“dmt”) of concentrate will be produced over a 19- year period with an average grade of 32.5 % copper and 3.4 grams per tonne gold.
• No deleterious elements in any significant concentration were found in the copper concentrate produced from the flotation testwork, and all the impurity elements were found to be below smelter penalty limits.
• A brackish-water aquifer located within 35 kilometres (“km”) of the proposed process plant site has the potential to satisfy the project´s process water requirements. Testwork has indicated this water is suitable for concentrator processing,
• Thickened tailings disposal will be in a natural basin approximately 1 km downhill from the plant site.

Click here for the full press release.