The Conversation (0)
Duluth Metals (TSX:DM,TSX:DM.U) has received the draft pre-feasiblity study for its proposed copper-nickel-PGM Twin Metals Minnesota Project. Highlights of the report include strong operating margins, a low 30-year cash cost position and low copper cash costs for the project.
As quoted in the press release:
- Over the TMM Project’s planned 30 years of operation, the PFS Technical Report estimates the mine will produce approximately 5.8 billion pounds of copper, 1.2 billion pounds of nickel, 1.5 million ounces of platinum, 4.0 million ounces of palladium, 1.0 million ounces of gold, and 25.2 million ounces of silver.
- Low C1 cu cash cost of $0.31/lb (net of byproduct credits) over the first 10 years of production and 30 year Copper (C1) cash cost of $0.76/lb (net of byproduct credits).
- Strong 30 year Onsite Operating Margin of $36.54/short ton.
- The TMM Project’s pre-tax base case, as calculated by AMEC, shows a net present value (“NPV”) of CDN $1.5billion @8% discount factor (US$1.4 billion @8% discount factor).
- The TMM Project’s after tax base case, as calculated by PricewaterhouseCoopers LLP, shows an NPV of CDN $0.9 billion @8% discount factor (US$0.8 billion @8% discount factor).
Duluth Metals president and CEO, Kelly Osborne, said:
The PFS Technical Report validates the TMM Project to be one of the most compelling greenfield copper-nickel development projects in the world. The foundations of the TMM Project are its tremendous mineral resource, technically sound engineering and test work, strong operating margins, and location in a state that supports the mining industry and has ready-built mining infrastructure and an experienced workforce to support a large-scale mining operation. We look forward to the next Phase of the TMM Project and continued efforts to improve the value of the TMM Project.
Click here to read the Duluth Metals (TSX:DM) press release
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