True North Copper

True North Copper Mining Restart Study Confirms Positive Cloncurry Copper Project Economics

True North Copper Limited (ASX:TNC) (True North, TNC or the Company) is pleased to announce the completion of the Cloncurry Copper Project (CCP) Mining Restart Study. The initial CCP life-of-mine plan demonstrates a strong economic basis and low-risk cost structure, with significant cash flow generated during the CCP’s initial 4.6 year mine life.


HIGHLIGHTS

  • Mining Restart Plan: Mining 4.8Mt of ore over an initial 4.6 year mine life, at a low strip ratio of 4.2, delivering 35kt Cu and 29koz Au contained metal, based on existing JORC reserves1,2.
  • Revenue and Cash Flow: Anticipated mine revenue of A$367M with free cash flow of A$111M, and a pre-tax NPV10 of A$88M, demonstrating strong operating economics at USD$8,500/t Cu price and USD$1,850/oz Au price (0.7 A$:USD exchange rate) (see Table 1).
  • Rapid Payback and Low Cost: Payback expected within six months post-mining restart, driven by favourable commodity prices and low all-in sustaining cost (AISC) of USD$2.65/lb Cu (see Table 1).
  • Low Capex Requirement and Operational Efficiency: Low upfront capex of A$1.5M leverages existing infrastructure, while peak operating expenditure is estimated at A$2.2M.
  • Strategic Partnerships: Production focus on high-quality sulphide ore, supported by binding offtake agreements with Glencore International AG, ensuring market access3.
  • Ready to Commence: The Nebari facility provides funding for the restart, all necessary permits for mining are obtained, and final preparations are underway with the goal of restarting mining in the first half of 20244.
  • Expansion Potential and Ongoing Exploration: Significant potential for mine-life expansion beyond current plans, with exploration ongoing and advanced projects in strategic locations surrounding the existing operation, promising long-term growth prospects.

COMMENTS

True North Copper Managing Director, Marty Costello said:

Our Cloncurry Copper Project Mining Restart Study confirms a robust and sustainable mining operation that has capacity to generate substantial cash flow. Projected mine revenue is $367M with a free cash flow of $111M and we anticipate a rapid payback period of just six months post-mining restart. We believe our first life of mine plan demonstrates the project's sound economic foundations and low-risk cost profile.

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 what we believe is an extremely favourable copper market.

We are committed to extending the CCP mine life. We are actively pursuing exploration and expansion opportunities within the GAM and Wallace North deposits, alongside our strategic tenure package around Cloncurry.

We will also continue exploration and resource work at Mt Oxide as part of our core strategy for growth and production.


Click here for the full ASX Release

This article includes content from True North Copper, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.


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