Caravel Minerals Ltd reveals high margins from Calingiri copper study
Date
6/30/2016 6:36:52 AM
(MENAFN- ProactiveInvestors - Australia)
Caravel Minerals Ltd (ASX:CVV) has released strong margins from scoping study for future production from the Calingiri Copper Project, forecasting a life of mine after-tax cash surplus of $1.5 billion.
The mine would become a low cost (US$1.50 a pound), mid tier producer with its farm-in partner, First Quantum Minerals (LON:FQM) if developed.
Capital expenditure would be A$440 million with a payback period of three years based on an initial 20 year life of mine, producing 710,000 tonnes (1.6 billion pounds) of copper.
The project, located 120 kilometres northeast of Perth in Western Australia would require a 15 million tonnes per annum processing plant which is included in the Capex.
The estimated life of mine operating cash cost of US$1.5 per pound of copper bodes well for Caravel as it moves to the pre-feasibility stage, since the copper price is currently above US$2.1 per pound.
The Calingiri Project contains a total indicated and inferred resource of 844,300 tonnes of copper at a cut-off grade of 0.25% copper.
Caravel is funded by farm-in partner, a global resources group with a market capitalisation in excess of C$6 billion.
The first year commitment to spend a minimum of $1.2 million at the Calingiri Project has been met by First Quantum.
The Calingiri project is located in the heart of the wheatbelt region, with existing infrastructure within and adjacent to the project, coupled with industry-standard mining and treatment options.
The pre-feasibility study is expected to be completed in the first half of 2017.
Last month, Caravel raised $400,000 by selling its Wynberg Project to CopperChem Ltd. <
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